Tankless boilers for hot water and heat have become more popular in the US in recent years, and they have been widely used in Britain and in Europe for a much longer time than here. Some people swear by them. Other wish they had never heard of them. My service/maintenance company discouraged me from getting one. I do not know why -- maybe they just don't fell comfortable servicing them. I would ask around locally among neighbors, and find out what contractors think of them.

Fred derf fred: I too was set on going tankless - till i saw the upcharge. It is coming to about $5,750 more to go with (4) gas tankless (Rinnai 94LS 9.4gpm top of the line) compared to State gas water heaters - as spec'd in the drawings of our house. I did research and found out that gas tankless do have an EF (efficiency rating) of .82, however GAS (i believe you compared electric tank) tank heaters commonly have .62, and a few have .68 efficiency. This results in savings of tankless is about $250 per year, for all 4 units combined. So it would take me more than 20 years to recoup the cost difference. This was based on a formula as provided by the dept. of energy. Additionally, State, who sells both, has a 'calculator' on their website that corraborated the results. Also, please note that your existing ELECTRIC tank heater was very OLD. New, gas models are much more efficient so I do not think it is a fair comparison. I am no expert, but these are my findings. I would greatly appreciate any other comments ASAP as we are about to make the decision on going tank or tankless

There is a LOT of disinformation on these forums about on-demand tankless units, ESPECIALLY the electric units. First, energy cost savings is NOT a reason in itself to make the switch. No reason alone is sufficient. It is the total package, in light of your particular lifestyle, that will dictate the pro-con outcome of the decision making process. First, tankless units save space -- a lot of it, especially electric units that do not need to be vented. In Texas we have no basements, so that can be an important issue. Second, an electric unit is unlikely to blow up, unlike anything using natural gas. Third, there is an endless supply of hot water, which in a successive-morning-shower household like mine, is a really important issue. And finally, yes there is some documented comp fuel savings (electric tankless over electric tanks, or gas over gas), that is really offset by the added initial cost of the unit plus upgraded electrical service or gas supply line sizing. Moreover, there ARE full-house electric units out there that provide plenty of water, unless you plan on taking two showers simultaneously while also doing your laundry and running the dishwasher! And if that's your bag, you can run 2 or more electicals together. Or get a really big gas unit. Bottom line, nearly every nay-sayer of tankless units ignore the pros and focus on a single con - cost, cost, cost. Well, we all don't drive a Ford Focus for a reason. Some of us enjoy our Buicks, Porsches or Camrys even though another car would get us from point A to point B cheaper while using less fuel etc etc etc. Full disclosure: I have a Steibel Eltron Tempra 36 whole-house electric unit. Love it. My electric bill went up nary at all.

Guys if you read the post, the reason the tank water heater was so expensive was due to the construction required to get his house up to code. I personally like my tank heater. If your changing from a tank to tankless there is alot of work to do. Moving water lines, moving gas lines (possibly upgrading gas line size too) and running a new intake/exhaust if using gas, upgrading the main service amps if using electric. Some things to consider Tank Heater Pros Costs less to replace in the future Easier to maintain (Tank water heaters are easy to flush out every year) Easier to install (dont have to upgrade gas line or main service amps) Gas water heater will still operate in power outage (electric will still have some hot water to use for a while till power kicks back on). Cons Not as efficient as tankless No Tax Credits Hot water limited by FHR (first hour rating) Tankless Heater Pros Unlimited hot water More efficient Saves space Cons Will cost more in the future to replace (there is no guarantee the tankless will last longer than a tank version, the heat exchanger can go bad and that is the most expensive part of the tankless) , Harder to maintain (you need to try to clean those tankless heaters out every year with a descaler so they stay working efficiently) Harder to install (upgrade gas line or main service amps) Tankless heaters have a limited throughoutput. While it is unlimited hot water, it can only supply so many gallons of hot water at a time Will not operate in a power outage. A tankless water heater is controlled by electronics whether the heater is gas or electric does not matter. Requires minimum gallons per minute from city water supply, some people have not been able to install due to that problem. Consumer reports note that users complain of inconsistant water temperatures. http://www.consumerreports.org/cro/appliances/heating-cooling-and-air/water-heaters/tankless-water-heaters/overview/tankless-water-heaters-ov.htm Another good site to look at: http://www.waterheaterrescue.com/pages/WHRpages/English/Longevity/tankless-water-heaters.html