Tankless Water Heaters - Anyone have one of these?

[CL82]

My current water heater (40 Gal, tall) has been a work horse and still is chugging along, but after 30 years (yep 30) I figure it is time to replace it. I could just swap it out for a new 40 gallon, that would be easiest plumbing-wise, but I guess I should consider a tankless heater. I know very little about them. Does anyone have one? How is it? Is it possible to outrun the capacity (i.e., if volume gets high enough does performance drop)? What should I look for regarding specs? What you do different, if you were to buy one again? Have you seen any savings?

My utility is offering $250 off if I get one, so that makes them pretty affordable. I'd be using a gas one, does that makes a difference?

 

[bfs3]

For what it's worth….I trust the two techs-lady and a gent-who maintain my coil in boiler domestic hot water system. It's a Weil Mclain, and pretty efficient for its age. When the domestic hot water mixing valve died (third time in ten years ) they suggested that I go to a basement heat pump hot water system.

I happily defer to their knowledge, especially because Maine HVAC licenses do not allow them to install the unit. I need a plumber for that.

With a tankless coil they can attach a 50 gallon electric as a sort of holding tank. It’s a much less expensive alternative if the heat pump is out of your budget. It greatly improves your hot water output as well.