I have a Rinnai tankless heater. There is a savings in gas, but it does take longer to get hot water depending on how far the faucet is from the tank. My friend, who installed ours, has a setup at his house that has a small insulated tank that allows for hot water in seconds. Not sure how it all works, but we are thinking of doing the same.
Plus, tankless heaters qualify for the environmental rebates from the government (about $400, I think).
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