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Default Replacing a hot water heater. Efficiency?

Hello,

I need to replace a hot water heater whose tank has cracked. Any
recommendations? I'm leaning towards just a straight replacement, with
a good energy rating. However, I've seen some articles on retrofit
recirculating systems, as well as "on-demand" hot water, and would like
to hear if anyone has any strong opinions. I'm willing to pay for an
efficient system provided it breaks even cost-wise over say 5 years.
Thanks.
JP

 
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