The obvious reasons for getting one is that it will save you money as it uses less energy. Some models can cut your water bill by up to 50%. Keep in mind that it is going to take some time to reap those savings because a tankless water heater costs anywhere from three to ten times what a conventional water heater costs. You will find them between $500 and $1,000. However, some tankless water heaters qualify for a Federal tax deduction of up to $300. You can discuss eligibility for this credit with your tax preparer. Keep this tax credit in mind if you are in the market for purchasing a tankless water heater as this can really reduce the overall cost of the purchase.
The other obvious pro is that tankless water heaters offer an endless supply of hot water. This is great if you have a large family with plenty of showers taking place. I know nothing gets my day off to a worse start than not having enough hot water to enjoy my shower. The water won't start getting warm until you turn on the faucet. While it does heat up rapidly, water is often wasted while you wait for it to heat up. However, keep in mind that a tankless water heater can only produce a set amount of hot water at one time. For those of you who like to multi-task, you will find it difficult to have the shower, washer, and dishwasher all operating at one time.
A tankless water heater doesn't take up much room, so storage room isn't a big concern. Many people find attaching their tankless water heater to the wall is an excellent way to maximize the space they do have available. Since there is no tank to worry about, you also won't have to deal with coming home and finding that your conventional water heater tank has sprung a leak.
The decision to install a tankless water heater is a personal choice. While it is an expensive investment, it is certainly one that will pay for itself over time. You will also have the convenience of always having plenty of hot water. The downside is you won't have the supply to operate several water demanding appliances at once. Some people already find that to be true with their conventional water heater, so it won't be considered a negative feature .