Suggestion from personal experience

[Peter-]

I just wanted to make a realistic recommendation based on experience. This is about water heating and state utilities in the US.

I can strongly recommend that you get a "tankless" "on-demand" water heater. Hopefully gas-fired regardless if the gas is propane or LPG. Normally the manufacturer or the plumber can provide the conversion kit.

It might seem to be a whole ton up front. It is. But it's worth it, and here is my experience:

Up here in upstate NY my Dad got one of these like a decade ago. It bolted in with some copper pipe sweating and a tin furnace elbow. The job was like $3600. NY requires all union made stuff.

It paid for itself in the first year. The house was a 2-story with partially unfinished attic build with Italian and Polish labor back in the 1930's. Dad's gas bill went from like $600 per quarter down to $120 per quarter. The house was 2-stories 2-1/2 baths 3 beds and a family of 5 before plywood was invented. Full basement and walk-up attic.

So if you can come up with the up-front scratch, I strongly recommend this.

[Peter-]

Whoops I mean LNG or natural gas.

[zap]

I wonder how far someone could could go with solar for $3600???

NY requires all union made stuff.

Heck, it would probably be worth spending 3x that amount to put a nail in the coffin of unions!

[12AX7]

Hello!

I installed a tank-less hot water heater about two years ago.  About the same time we replaced a old (end of it's life) washer/dryer set.
The new washer has the high speed spin, clothes come out of it 'very damp' instead of soaked, making drying them much faster.  These two changes made a huge difference to our gas bill.   
It's impossible to point the finger at which had the largest impact on our gas bill.
We love the tankless,  shower as long as you wish, do laundry or run the dish washer and no worries about running out of hot water.
There is one issue with the tankless that some might want to consider.  We live out in the sticks and have a well.  When we turn on the faucet (and haven't been using hot water) there is a long delay for the heater to "kick in"  Some time this delay is longer, it depends on the pressure in the pressure vessel.  At times it may take as much as a gallon to 1 1/3 gallons before it kicks in.  For us wasting well water isn't all that bad, BUT... that is extra time our (shallow) well pump needs to run.
IIRC there is a built in safety system that checks the inlet cold water pressure and the out going.  I may be able to improve things by adding a secondary surge tank at the heater.

We have a septic system, if it was a holding tank that had to be pumped this hot water delay issue would be a BIG problem.

I always ASSUMED that the delay issue was 100% a well/constant pressure issue, but several months ago a brother of mine installed a tankless and he has the same complaint,  and they live in the city with constant water line pressure.

Another thing to consider is the gas line supply.  Most all hot water heaters are piped with 1/2 black pipe.  These tankless have btu ratings up around 180,000  and require a 3/4 gas line.
Many people  will do their own copper pipe,  but don't have the tools to thread 3/4 black pipe.   I had the tools but instead purchased various lengths of thread pipe to get the job done.
These heaters require a special vent system that will put you back at least another $200.

Over the years I've replaced a dozen or more hot water heaters, and everyone of them failed the say way,  the tank developed a leak.
these tankless have stainless steel heat exchangers and (knock on wood) will never rust through.

Bottom line is,  I'd give these heaters two thumbs up.

ax7
Mark

[loonie]

Hi, I also have a tankless and love it. To solve the wasted water problem I installed a circulator called chillipepper, push a button and the water circulates from the hot to the cold side untill it see's temp and then shuts down. It'a almost as good as instant hot water and dosn't use much power ( 4 to 5 amps 24v for 1 to 1 1/2 min.)

[Tinbendr]

When we turn on the faucet (and haven't been using hot water) there is a long delay for the heater to "kick in"  Some time this delay is longer,

I have electric on demand water heater.  I noticed this too, especially when my children would take a shower.  When I heard one start, I went down the hall to see what they were doing.  They would turn the spigot WIDE OPEN waiting for the water to get hot.  But when the water flow is max, the water heater struggles to heat the water.  I told them to start the shower head right away.  Since the shower heads are a low flow device, the water flow would slow down and heat the water faster.  Since then, I noticed the 'preheat' was shorted and my water usage went down.

[12AX7]

Hello!
Tinbendr said..
I have electric on demand water heater.  I noticed this too, especially when my children would take a shower.  When I heard one start, I went down the hall to see what they were doing.  They would turn the spigot WIDE OPEN waiting for the water to get hot.  But when the water flow is max, the water heater struggles to heat the water.

Our gas (natural) has NO problems heating the water to it's set temp, even at maximum flow.
But I have similar problem with the bath tub faucet that's equipped with a safety feature that's suppose to prevent burns.  It automatically adjusts the hot/cold water mix to limit the max preset temp.    When you open the spigot to max hot (with the idea of getting the hot water faster) and the HOT water reaches the faucet it then adds/mixes cold water to regulate outlet temp.   In the mean time the decrease in hot water flow is sensed by the water heater which then backs down on it's heat setting.  By then you adjust the faucet to where (about) you would normally set it during your shower.  This in turn causes the faucets auto mix adjust to "warm up" the outlet temp.   This in then pulls more hot water from the tank-less which senses the need for more hot water,  which cranks up the burner, which in turn causes the faucet to adjust it's auto mix....  and  around the circle we go.

Like two servos trying to adjust/chase/follow each other.
Kinda reminds me of two radio amateurs talking SSB with VFO's   chasing each other on the band.

The trick is to set the faucet about where you'd like it and let the system settle down and make slow minor adjustments.
But once set,  you can shower for hours and not run out of hot water.

ax7
Mark