Check the plumbing pipes above the water heater using a stepladder if necessary.
Can tankless hot water heaters leak.
Mostly in case it happens tankless water heaters leak from the bottom or along with the connections.
However as time goes the leakage may turn out to be catastrophic if not taken seriously.
If condensation is continuing it might fall the entire system.
The first place to check is the plumbing pipes above the water heater.
If venting is not working correctly it may occur condensation inside the water heater which leads to leakage problems.
While condensate may not pose an immediate problem the way a leak does excessive condensation can lead to pilot light outages and cause your water heater to corrode prematurely.
Water leaks from your water heater are a symptom of a much bigger problem in wait.
A drip from above can easily leak down on top of the water heater and even work its way down the insulation and make it look like the leak is coming from the tank itself.
Architects and engineers understand that when a tankless water heater reaches the end of its life it will likely leak just like a tank.
If your tankless water heater is dripping water it should be serviced or replaced as soon as possible.
It may seem not a big deal at first.
Water heaters can leak for a wide variety of reasons and most leaks are the result of a loose valve or fitting rather than the heater itself.