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The old fashioned, tried & true.
There are some very good gas hot water heaters made these days. Most of them are pretty much the same design and contain the same parts.
Lee Ann, nothing wrong with big fat and ugly as they have proven themselves for many years and will continue to do so for many years to come.
I recommend solar - the cost is in the same realm as going with tankless - and if you are all electric, keep in mind you need one free 80 amp circuit for it - not many have that available.
A gas powered tankless heater can provide endless hot water even with the largest of demands and as soon as you turn off the faucet, so does the hot water heater turn off as well.
The other consideration on going with a tankless is the payback costs. If your planning to sell your home in a short while, you will never see the savings if you go that route. While its a bonus on a selling point, you know that its just that a bonus, your not going to recoup the cost on the sale of the home. But you may sell sooner with this type of modern appliance installed. Otherwise going with a tank type system would be the better choice if cash is tight. As these units are going to cost you in the neighborhood of @ $1,500 to purchase and install.
Currently in many states there are great rebates and government incentives to put in energy saving equipment. Contact a BPI professional home energy audit contractor for more information on this and other programs within your state.
I didn't know about electric requirements for tankless and found it cost more than the tankless system. I love tankless - instant hot water and consistent hot water when I use my jacuzzi
I would also go back to the people who sold you this unit and ask them why did they not tell you that your pressure and pipe condition would be a factor in the operation of this unit.