Correct, it is refilled with hot water. With daily use I do not think it will ever come on. I currently just have it set to vacation, I have not heard it run once (power vent). If I can make it down to Harbor Freight in the next couple weeks I will buy an IR temp gun (have a coupon to get one for $26) just because I am curious to see what the temp of the pipe is entering the water heater. That and I would like to see what the difference is in and out of the exchanger on the boiler side.