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What is efficiency?

The boiler efficiency is the ratio of the energy input to output. This means that high efficiency boilers require less fuel input to produce the same amount of heat to the system as lower efficiency boilers.
In any boiler there are heat losses, some in the flue (the combustion products are hot and therefore carry part of the heat energy out of the boiler into the outside air), and some through the boiler casing into the boiler room.

If the total amount of energy produced by combustion was transferred to the heating system water the efficiency would be of 100%.

However the losses described above mean efficiency is always lower in practice. This is not always true for a condensing boiler that can have an efficiency of more than 100% due to the way the efficiency is calculated.

Source: DGC