We looked long & hard at these and decided against getting one. As others have said, changing ground water temp means having to tweak the thermostat at least 2x per year if you"re in a winter zone (we are). Our gas line was big enough so that wasn"t a factor for us, but could be for you. Also, each unit has a different turn-on gal/min rate. A unit sized for shower + washer may not turn on if you just need a dribble of hot water from the kitchen sink. Also, our house is super-tight, and every unit we looked at required a continually-open fresh-air line (which would also let cold air in between uses - a consideration for a family of two who oft aren"t home much). Even those with a fan for combustion air still were open to the outside. Someone else here asked about hard water - these heaters hate it. We were told the heaters have to be/should be disassembled and soaked every year or so even if used with softened water. Lastly, although this wouldn"t have been a factor for us, some writers have also noted that "all the hot water you want" too often turns into wasteful super-long showers and tub-brimming baths, chewing up the $s you"re trying to save.
We ended up with a 40-gal conventional electric. Plan to super-insulate it and will likely add an on-demand circulator pump to more quickly bring hot water to each fixture. Since we installed this heater, we"ve also found ultra-high-efficiency gas heaters similar to the furnace we had installed, and may move to one of those whenever this unit gives up the ghost. Reason for considering the change is that we occasionally run out of hot water if we try to do 2 large loads of laundry immediately followed by a shower; a gas unit will recover a lot faster than electric.
Both the Journal of Light Construction and Fine Homebuilding have had articles about heater selection and articles specifically about tankless. Both are worth the money to get reprints of those articles (I think at least JLC lets you pay/print copies right online).
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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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