I did an earlier post on Tankless Water Heaters and now Consumer Reports has come out and said they are ok but pricey and have their quirks. They don't recommend the electric ones at all for the whole house. Some of the quirks are not enough hot water or hot water then cold then hot. Or if you don't run water enough the burners don't come and give you hot water.
The tankless heaters save about $70 a year in gas but because of the cost it can take 20 years for the unit to pay back and then it is time for a new one. It gas keeps going up of course the payoff will come much quicker.
We haven't installed one at my new home site, Westchester Estates in Chesapeake, Va, yet but I am hoping to have one soon.

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