I've got a tankless hot water heater, and I absolutely love it. However, there are some very important factors to consider before buying one of these:
- First off, I live in Texas. The ground never freezes here, and it's very rare for the water temperature to drop below 40F. Tankless water heaters work by heating the water up by X degrees, and realistically, there's a limit to how big a number X is. Some of our yankee friends replaced their (admittedly older model) tankless heater with a tank one because they couldn't get their water hot enough. Unlimited lukewarm water is not what you want.
- Having a tankless hot water heater doesn't mean instant hot water...it just means you never run out. Overall, I'd say it takes us ~30 seconds longer to get hot water at any tap over what it used to take with our old tank water heaters. It's not a big deal to us, but it could be for some people.
- A lot of folks make the mistake of not buying a big enough tankless heater. We have one tankless water heater for our whole house. We have 4 full bathrooms, kitchen sink, dishwasher, and washing machine. When we sized the water heater, we made sure it could support running all 4 showers at once...or 3 showers and either the dishwasher/washing machine. Does that happen often? No. But the people I know who aren't happy with theirs figured "Oh, I'll never be running that many showers/dishes/laundry at once", and yet they don't have enough hot water because they weren't realistic about their usage.
- One thing I have noticed is that if we do have, say, all 4 showers running, then we don't have quite as much water pressure as we did in the same situation with the tank water heaters. However, it's been worth having slightly less water pressure to have enough hot water.
Overall, this is a situation where you want to consult with a plumber who has a lot of experience with tankless water heaters. Ask them about their experiences with the tankless water heaters. If they don't bring up the bad with the good, call another company!!!!
Feel free PM me with any other questions.