when looking at swapping out from 40gallon to tankless a few months back.
tankless water heaters = need a good installation. if there is a bad installation, and there can be problems. watch a couple hours worth of different youtube videos. of how to repair/fix issues, along with "bad install" videos. read through a handfull of different manuals, from same manufacture to different manufacture as far as installation goes for them.
valving and then fittings. (not including exhaust), can quickly cause a tankless water heater cost to sky rocket for initial purchase cost. and if room is not made during installation of valves and fittings, so you can physical remove stuff and put in new valves and fittings that will eventually fail. you are talking a higher repair bill. due to other stuff may need to be replaced just to replace a single valve. the large space for all the valves and fittings, can quickly take up space of what a tankless water heater uses.
yes they make valve packages and kits for tankless water heaters, to reduce space, but they come at additional cost.
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condensation line / drain line for exhaust vent, and properly running vent pipes can be a big deal. and make or break the overall installation of a unit as well.
just because you might be able to use say pvc pipe vs metal pipe. does not mean squat, if you are having issues of were you want to run the exhaust outlet / inlet pipe.
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natural gas / LP (liquid propane) gas.... pipe sizing for the gas needs to be sized correctly. from regulator on house to the tankless water heater, which good chance you may need to upside the pipe if you had a tank in there before.
you need your drip legs, shut off valves, and correct slops for the gas lines. or additional issues may come up.
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electrical 110v is needed for tankless, if you are still using natural gas / lp gas. to run the sensors and little computer board. this can be an additional cost if you need to higher an electrician. along with installing a switch for emergency shut off. if need be for the unit in close enough proximity to the unit.
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while the plumbing for a ventless tank, looks all simple enough. if not properly sized, correct slopes, correct material, correct spacing, correct solvents/glues, correct soldering, . the installation can go down hill quickly...
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if manual states to run say run some acid through system to clean it out a 1 to 2 or more times a year. that acid needs of course be "well ventilated", and most likely rather toxic. granted a tank water heater, you should pull drain on them and clean them out as well. but tankless water heaters less forgiving. than a tank hot water heater. and in that cleaning the crud out of them.
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and above still does not resolve some issues with tankless water heaters. were you can get (forget key word) a cold slug. were you are running hot water, and then unit turns off, for a moment, and you are still continue running hot water, then it turns back on. you could get a "cold shot" of water.
with above, i do not have a tankless water heater, and last example might be turning hot water on/off say washing/rinsing dishes. or cooking, or tankless water heater sized to large, or not enough "settings" to allow for a lower MIN. GPM of hot water to be had. as a result tankless hot water heater not kicking on. or switching between on/off causing hot,cold,hot,cold,hot,cold water coming through the hot water line.
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adding to above.
looking at spec's that i can remember. it almost seemed better to put in 2 smaller units. vs a single larger tankless water heater. so i could get the lower min GPM going. so the system would adjust to things better. vs having to BLAST really hot, hot water. to keep unit going. and/or setting a larger unit down in max tempature. to get by for the lower usage times of day when not a lot of hot water GPM wise was needed.
if cost was no object, i would be more inclined to install small little electric tankless hot water heaters, one at each sink, shower/bathtub, cloths washer. so if a unit went down you had backup at another sink or like, and you could size each one to given GPM of what was connected. would encourge going with a larger cold water line through home if did this. so there would be enough cold water supply and pressure to meet use.