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Thanks, Dana. That's the kind of information that I need.

Thanks for the quick reply Dana. I didn't think of a Solar pre-heat. More research. Lucky I am not time pressed at the moment. I actually thought that because I was outdoors, my standby losses were so great that tankless would pay for itself. If not, there seems no reason to do so.

I'd appreciate advice in my situation on whether to go with a tank or tankless. My water tank is outside in a metal shed, with outside temperatures at the lowest in winter just around freezing (32 degrees) to a high of a little over 100 degrees in summer. My water heater is located directly...