Can't answer the question asked, BUT ~

Dad the plumbing & heating guy has long said that they aren't what 
they're cracked up to be.  Having designed systems for schools & 
banks & assisted w/ some design at Cold Spring Harbor labs, he's 
*real big* on efficiency.

But that's just Dad, so in shopping I checked Consumers Reports.  
They listed a few drawbacks to on demand water heaters but the one 
that changed my mind is that the savings in energy will never come 
close to the extra cost of the system, the system will bite the 
bullet first.

Consumer Reports had lots more on water heaters.  We decided to buy 
one with a 12 year warranty ~ better insulated and heftier heating 
coils.  Next year . . . .
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