I spent a lot of time researching these. I like a lot of things about the concept but there are some problems. First, I'm not interested in the gas version, which would solve some of the issues but I don't trust gas/propane/lpg, etc.
The on-demand hot water heaters take up very little space. That's a big plus.
On the down side, they are not rated to raise the water temperature very much. We have very cold water. These units are designed for relatively warm ground water. The result is I wouldn't be able to get a good hot shower. One work around for this is to run several of the units in series. That gets expensive both in terms of electrical usage and in terms of multiple units.
Then there is the electrical usage. They use a
lot of electricity when running. This requires special wiring and a large service to the house. Something else running at the same time could result in brownouts that can damage electrical motors like compressors in fridges and freezers, etc. For me this was a big stumbling block. We are very rural and have limited amperage coming into our house. To get higher amperage at the service panel means spending tens of thousands of dollars ($45,000 last quote). That makes it not feasible.
Lastly, the high power spike makes going off grid impossible. I can generate power with wind, solar and hydro. None of them can supply the instantaneous power needed by these units without extreme battery banks and inverters. Again it drives up the costs too much.
An advantage of a tanked water heater is it can be coupled with solar hot water and wood stove hot water. The hot water tank is inside the insulated envelope of our house so any heat lost is lost to our house which needs heating 10 months out of the year - we're in the mountains of northern Vermont where it rarely ever gets above the 70's. So I finally concluded to stick with tanks.
Cheers
-Walter
Sugar Mountain Farm
in the mountains of Vermont
http://SugarMtnFarm.com/blog/
http://HollyGraphicArt.com/
http://NoNAIS.org