When you say tankless water heater are you refering to one that is installed in your homes heating boiler or the one that fits under the individual sink?
As a person who once worked in the Heating and Air Conditioning business, It is my opinion that a normal hot water heater be installed, depending on the gallon size and number of people in your household if sized right you should never run out of hot water.
It has been my opinion to have one unit to do one job.
When you have the coil in your heating boiler you can always run into the problem of running out of hot water during a heating cycle.The under the sink or direct hook up units I really cannot attest to.
I have always had a 50gal. natural gas water heater in my home and with 4 people including teenage daughter I have never run out of hot water. But I always waited to shower after the daughter was finished.
As far as the direct hook ups,under sink units, I would never heat my home or my domestic water with electric. In my area that would be over expensive plus since the water is hard in most homes it is very hard on the insides of the tanks,annodes and heating elements.
Domestic water coils in heating boilers are suceptable to same (blockage) over time unless you have a water softener.
Like I said above I have a 50gal gas water heater and all my water in the house has been softened,No problems. About once per month I do drain a bucket (5gal.) from the bottom of the water heater to make sure there is no sediment.
Hope this helps
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Anonymous