Tankless water heaters come in electric and gas versions.

For an electric one - you need a very heavy power line directly to the
unit. The unit is small but it calls for a lot of power when it snaps on.

The gas version is very nice - above two cubic feet. The ones we looked
at cost around $2000 - but they tested out well. Very efficient - plenty
of hot water when you want it.

Here is Tallahassee - the city own the electric and gas company. They
offer a rebate of $450 for every water heater you convert from electric
or gas - probably to cut down on peak loads. Since our home has two
electric water heaters - we plan to convert them over to gas and get a
$900 rebate - which will more than cover the conversion if we put
conventional gas tank heaters in.

When the energy auditor was here - he figured the pay back for putting
in two tankless gas heaters was over 10 years. If we chose the tank gas
water heaters and the rebates - payback would be immediate.

I really like the tankless gas units - but right now will chose tank gas
water heaters.

Harry