If you are going to change your system from a tank type water heater to an instant water heater system, it may be time to start thinking about where to place it in your home. The size and layout of your home, as well as geographic location, are the main aspects that affect the location. However, there are other factors that will determine efficiency.
The simplest way to explain how geography affects the efficiency of your instant water heater is that they all work best in warmer climates due to the ambient temperature of the water. If you are in a cold northern climate like Minnesota or New England, where the weather is cold in the winter, a tankless gas or electric water heater will require more energy to raise the incoming cold water to the correct hot water temperature. . . In a southern climate, water starts out at a higher temperature and requires less energy to be efficient. Each company has a geographic area map that will show you the type of water heater you will need.
Size and layout of your home
If your home is small, or you have a small condo, then you can get away with just one central instant hot water system. But if your home is spread out with bathrooms located at opposite ends of the house and a washer and dryer and kitchen located elsewhere, then you should consider using a smaller unit for each of the remote areas.
Use of hot water
The amount of water you use also affects the type of water heater you will need. A family of four or five is not much different than a family of two if the size of the house is the same. However, if everyone uses the water at the same time, there's a chance that you won't get the best use out of a single tankless central gas water heater.
Natural gas availability
Natural gas is more efficient than electricity due to the cost involved. However, there are some limitations to placing a hot water unit without a gas tank due to the need for gas venting. It is a major safety concern and should only be installed by a licensed plumber or gas company technician. If your area does not have natural gas, then liquid propane would be the alternative.
In any case, the placement of instantaneous water heaters requires more than a simple explanation to determine their most efficient and profitable use. Knowing some of the details is not complicated and will save you a lot of money in the long run. Find out as much as you can before installing an instant water heater.