If your tankless water heater is dripping water it should be serviced or replaced as soon as possible.
Can tankless hot water heaters leak.
Lack of adequate venting will cause water leakage and it is a well known culprit for tankless water heaters.
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.
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Even though the leak is substantially less than a tank containing the water and conveying it safely away can save thousands of dollars in property damage.
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.
Check the plumbing pipes above the water heater using a stepladder if necessary.
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.
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.
The first place to check is the plumbing pipes above the water heater.