I was researching this subject a while back.
The high efficiency tank water heaters are dirt cheap now.
The extra cost with a tankless unit will be made up, but its just a matter of saving up front or saving over time.
I have seen new tankless water heaters for 500 bucks on ebay, i'm not sure how good they are, but for someone looking at reducing utility bills that might be worth looking into.
Also I stumbled upon a device that the seller stated that 60 percent of households in brazil are using it.
It is basically an electric heater that plugs into a shower head, and heats the water as it flows through the shower head, giving you a endless hot shower, and saves money working similar to a tankless water heater.
Not sure why those are popular, unless you like to wash dishes in cold water, and do laundry.
