Tankless water heating systems are very cool. They save noticeably on gas usage, but with installation costs, they run at least three times the cost of a regular tank.
Also, from my experience with much longer delay in hot water delivery here in TV, I would be even more hesitant about installing a tankless system here. When I put in a top-of-the-line Takagi TK-3 system in my home up north I immediately noticed a significant delay in hot water delivery. That's not a huge problem where water is cheaper and more plentiful, but I think it would be a much bigger problem here.
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