High-efficiency condensing water heater

Aspects of the invention relate to water heaters including a water storage tank having a top wall, a bottom wall, and a side wall extending between the top wall and the bottom wall; a combustion chamber extending below the bottom wall of the water storage tank and a heat exchanger configured to receive combustion gases and to transfer heat to water in the water storage tank. The heat exchanger includes a first pass flue extending through the water storage tank and a plurality of second pass flues coupled to receive combustion gases from the first pass flue. The second pass flues extending through the water storage tank and having a straight top portion, a curved bottom portion, and a longitudinal axis residing in a plane. The curved bottom portion of the second pass flues exits the water storage tank through at least one aperture defined in the side wall of the water storage tank.