I just got back from Home Depot, and was very impressed with the guy (Bruce) and his knowledge. Here are the pros and cons.
Pros:
Cheaper gas bills. He had one in his house and compared the summer utility bills with the tankless and without. Said it was about a $20 difference between the two, which was a little less than half. (Thats with 2 people: showers daily, washer twice a week).
Takes up less space in basement.
Cons:
Tankless heaters are supposed to last 20 years but he’s been seeing them be replaced in as little as 3 years due to the electronics going bad.
You have to purchase the venting system which is not included and costs $298.
You cannot vent the system to the outside if there is a sidewalk or a driveway on that wall. Reason being, the exhaust is hot and can burn someone if they touch the metal exhaust pipe. So it must be vented to a grassy area away from traffic.
The vent has to be 4 feet away from windows and the electric and gas meters.
We in the Cold Climate areas have to buy the heavy use models (more money) because the temperature of the water coming into the house is so much lower than the typical 60 degrees in the southern parts of the country. The ones that are rated for one major application at a time, will not cut it.
Electronic ignition, no hot water during power outages.
Have to run a larger gas line, at least 3/4" from the meter.
Require a plug in power source.
So with that being said, I think I’m going to go with a tank water heater. Since I am upgrading my furnaces to High Efficient, I will need to figure out if I should get the power vent hot water heaters, or a normal hot water heater and have my chimney lined.