Either option you describe doesn't put the water down the drain, so that's good. The 2.5 gal water heater option, though, brings up this question: if you use appreciable hot water from it, and you now have put "tons" of cold water back into it, I doubt that it would have had enough time to recover and your hot water would now be lukewarm at best. Doesn't that kinda put you back pretty close to square one?

I've always preferred the recirculating pump design. And, they can be a DIY project where you may not want to plumb a water heater. The always-on pumps should be avoided for the excessive heat loss they guarantee. The timer-based pumps are better but can only approximate your habits. The demand pumps with a touch switch (or even a motion sensor!) are the ultimate but they command a hefty price. I've done a DIY demand system with a Taco pump from eBay and the Grundfos thermostatic valve from a timer-based system with my own low-voltage control for about 1/3 the price of the Metlund system. Also, be sure to insulate your hot water lines.

Here is a link that might be useful: On-Demand Hot Water pumps

Thank you for explaining this! So which of the pumps in the link you provided is a demand pump with a touch switch? It looks like the Laing uses the timer method and the Metlund is what you refer to as "instant". But where is the touch switch? I think what you've described is what we need and I'm on the right track - I'm just trying to understand this so I can explain it to the plumber. I don't want to be sold something else thinking it's one thing only to find out later (after it's installed) that it's something else.

I don't think we want a Laing w/timer switch because our power has a history of going on/off during storms. We used to have a timer on our hot water heater when it was electric and I was always having to go down and reset it. Problem was solved when we switched to gas hot water.

Thanks again! I'm all for saving water especially since we are on a septic system.

Below is a link to the Metlund web site. When we remodeled, we put in one with a dedicated return line. I love it! It still takes a while for the hot water to get to the tap but instead of going down the drain, the water goes back to be reheated.

Katy

Here is a link that might be useful: Metlund d'mand pumps

The ChiliPepper recirculating pump is under $200. I don't own one, but they seem like the least expensive option.

I had forgotten about the chillipepper pump. It costs less than other systems, but it also looks cheaper, too. Wonder how long they last?

sippimom - The Laing systems in my link are all timer-based pumps. The Metlund systems come with a button/switch to activate the pump, but my link also offers optional wireless switches and/or a motion detector switch.

Here is a link that might be useful: Chili pepper pump

OK, thanks to all of you! The Metlund system might work better for us given our track record on area power outages. A motion detector switch would be the cat's meow if it works well! At least I know now what to ask for when I get the plumber out here and I appreciate your help. My DH is good at lots of things but plumbing?...well... let's just say it's better left to a professional for this particular job.

Bumping this up to thank formulaross. We installed the Laing autocirc2 under the kitchen sink and it works great! No more gazillion gallons of cold water down the drain while we wait for hot water out there. Our plumber had never installed one (younger guy) and he thought it was quite slick.