FWIW, Rosie Romero on his radio show has discussed this topic at length and may 
have a FAQ at his site with further info.  See:

Rosieonthehouse.com

Current users have reported that with a large family, serial and not concurrent 
showers are the only way to insure adequate hot water.  Lastly, they are 
currently more efficient and less expensive with natural gas as opposed to 
electric operation.  Mitch
  ----- Original Message ----- 
  From: Ray Boyce 
  To: [email protected] 
  Sent: Saturday, March 22, 2008 1:27 PM
  Subject: [BlindHandyMan] Why Choose a Tankless Water Heater?


  Q: I'm considering replacing my old water heater with a tankless version.
  Are these things all they're cracked up to be? 

  A: Tankless water heaters are likely the wave of the future for residential
  hot water. It's the difference between having a "smart" water heater or a
  "dumb" one. Tankless heaters offer on-demand convenience. Because these
  heaters don't have a holding tank, water is heated on an as-needed basis,
  not heated and stored for hours like a traditional tank. This reduces energy
  loss from sitting water and also guarantees you'll never be cold if you're
  the last one in the shower. Plus, tankless heaters are powerful, yet
  compact. Most can be wall-mounted inside or outside the home. Although sizes
  vary, the average tankless unit is about 24 inches high, 18 inches wide and
  9 inches deep-significantly smaller than the traditional 40-gallon tank.
  Plus, with many tankless units you can dial in the water temperature with a
  digital controller. 

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