My experience with tankless water heaters is limited to Central America,
where they are common in homes, hotels and offices, and indeed it is rare to
find a tank. In Belize and Guatemala at least they are usually powered by
butane, rather than propane.
They seem to provide almost instant hot water, and while I don't have the
specs I don't think they "waste" any more water due to water running through
them than a tank would waste due to water in the pipes.
The main disadvantage of these systems in Central America is that sometimes
they are haphazardly installed -- electrical wires left exposed, butane tanks
not secured properly, and so forth. Taking a shower sometimes is an
adventure.
--Lan Sluder
Belize First Magazine
http://www.turq.com/belizefirst/
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