Tankless Water Heater

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I do know that I watched my natural gas bill for the year prior to the installation and a year after the installation and saved an average of $20 a month after the install. That is $240 a year. Since the unit is now nearly 5 years old, it has nearly paid for itself, not to mention the $1500 tax credit in the initial tax year. I also use the recirc timer to turn on at 6 AM for morning showers, and again at 10 PM for nightly face washing, washing dishes, and occasional showers. Not a drop of water is wasted because the water just circulates within itself.
My electric tank WH lost 250 BTU/hr (75w) through the insulated jacket. At $1 per 100,000 BTU for NG I didn't think a tankless would ever pay for itself.
 
Why should it circulate at all? I thought the savings were achieved by instantly heating the water when needed. When you do your calculations on savings, you have to take the power to recirc into account.

Those little pumps, similar to the small Grunfos pumps, are so small, that there was no noticeable increase in power consumption. I have both of my bathrooms about 70' away, so without initial circulation, those 1/2" copper lines must first get warm and eliminate the cold water before achieving the warm water, unless the pump was first activated where the water would come out instant hot.
 

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