Just finished swapping the old tank for an electric tankless—best space-saving move yet

I went thru the same debate last spring when my old 50-gallon Rheem started weeping at the base. My place is also a 2/1, and while the extra storage from an electric tankless like yours would have been amazing, I ended up sticking with a hybrid heat pump model. Since I have a small attached garage, I didn't mind losing the floor space there to get the cooling benefit during our humid Georgia summers.

The space trade-off is the hardest part of the decision. My brother installed a Stiebel Eltron Tempra in his guest cottage to save room, and he actually had to upgrade his service becuase the draw was so high when the ground water got cold in the winter. Since you alredy have that 200A panel and plenty of room for those double-pole breakers, it sounds like you avoided the biggest headache. Regarding that "sandwich" effect, I found that installing some simple foam pipe insulation helped keep the water in the lines warmer between uses. It isn't perfect, but for the sake of having an actual linen closet, a five-second burst of lukewarm water is a small price to pay.

I looked at those electric tankless units when we renovated our place in the mountains, but I ended up going with a Rinnai gas tankless instead. Even with a 200A panel, the draw for an electric unit that coud handle our winter groundwater temperatures was just too much. I think the specs said I whould have needed three or four 40-amp breakers just for the heater, wich would have eaten up my entire panel capacity.

Instead of the linen closet approach, I mounted the gas unit on an exterior wall. It meant cutting a hole for the vent, but the performance is incredible. We get snow here, and the incoming water can be near freezing in January. The electric models I researched just couldn't provide enugh of a temperture rise for a decent shower flow when it’s that cold outside. I still got my floor space back, but I don't have to worry about the lights flickering every time someone turns on the kitchen faucet.

I did have to run a dedicated gas line, which was a bit of a hassle, but for a 2/1 house, it has been plenty. The flow rate is consistent regardless of the season, and I don't have to think twice about running the dishwasher while someone is in the shower.

Have you ruled out the long-term maintenace on that electric tankless? Since you're in the South, depending on your water hardness, those heating elements can scale up surprisingly fast without a dedicated softener. It’s definately nice to have the closet space back, but I’ve seen these units get finicky after a couple of years once the buildup hits the flow sensors. Did you check your local water report before the install? Sometimes the relief of losing the tank is just replaced by the chore of annual descaling flushes.

You're spot on about the space savings—reclaiming a whole closet in a 2/1 is a massive win. I did the same and it totally changes the layout. One thing alot of people overlook with those electric units is the minimum activation flow rate. If you have low-flow aerators on your sinks, you might find the heater doesn't always kick on if you're just doing a quick hand wash. I had to swap out my master bath faucet aerator to a slightly higher GPM just to make sure the unit triggered every time I turned the hot handle.