In my first house, I had a tankless gas fired w/h. We were on a well and the tankless would only get the water up to about 110 degrees. I installed a small 30 gallon electric tank water heater to feed the tankless and disconnected one of the elements and turned the thermostat as low as it would go. Then I installed one of those heat recovery systems on the a/c and circulating through the tank. This preheated the water using very little electricity and allowed the tankless to put out up to 150 degree water for the dishwasher and washing machine. I think tankless water heaters are great and we saved a ton on our electric bill. But I agree if you go tankless, go gas.
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