In many if not most installations, there is little to no net savings. The tankless cost more to buy, costs more to install, and doesn't use much less energy than a tank heater - unless you hardly ever use hot water or - with one exception.
If you have areas in the house that are distant from your main tank heater - installing tankless units at the points where the water is needed can save some energy.
A well insulated electric tank heater doesn't use much energy to keep itself warm - about 1/2 % to 1% of its heat, per hour. So, a well insulated 40 gallon tank heater wastes about 5 gallons of hot water per day.
Tankless heaters aren't any more efficient at actually heating the water than tank heaters, and sometimes less efficient. The hookup to put a tankless in can be expensive.
For example - Small 4.4 GPM tankless gas with a 70 degree rise - needs 3/4" gas lines. Very small 2.5 GPM tankless electric with a 40 degree rise uses a two 40 amp breakers with a 240 volt circuit.
Keep in mind that standard tankless heaters are rated by "temp rise", not "temp." So, a heater rated 2.5 GPM with a 40 degree rise - can raise the existing water temp by 40 degrees when flowing 2.5 gallons per minute. If you have cold well water - at 45F degrees - that means you're going to get 85F degreee water at the 2.5 GPM flow.
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Today's Featured Article - Women and Tractors - More Views From the Farmer's Wife - by Teri Burkholder. The top ten reasons why the judges wouldn't let you participate in the stock antique tractor pull: Hey, this is stock! It came with that V8 in it! That "R" on my tires stands for "really old" not radial! Blue gas? We thought it was a pretty color! What wire hooked to my throttle?
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