A tankless, IMHO, is rarely the least expensive or best solution. SOMe situations, they work great, some, they do not.
NOt counting installation costs, in order of operating costs, things go sort of like this:
- solar heated tank
- indirect tank
- NG WH
- Might be a tossup between propane or electric WH
- oil WH
- tankless
IMHO, throw in initial costs, limitations, maintenance required, and tankless often still sits at the bottom. If you don't already have a boiler, disregard the indirect.
The allure of endless hot water comes at a price, and if not carefully sized for the intended job, can often disappoint. ANd, if you don't do the periodic maintenance (the harder your water, the more often it is required), your performance can quickly erode. Then, try getting a repair part in a timely fashion...may not happen, as they aren't composed of mostly universal, interchangeable parts like typical tanks. Finding a good tech can be a problem, too. You may be lucky and have a competent one nearby. Not everyone can fix a tankless system, at least efficiently.