i usually talk people out of going tankless, or when i tell them that i have to do a gas load calculation and determine the demand of hot water to the home, test the water, and it will not be "free estimate" they say " ill call you back". truth is you usually need to either increase the gas line from the meter or run a separate line just for the TWH from the meter.repipe the water and the vent. most homes need the 199,000 btu modle and you are taking out a 40,000 btu WH. then it is recommended that a water softener b installed if you have hard water. hard being only 9-12 grains hard otherwise the homeowner needs to flush the unit annually with vinegar (yeah right). if they have a big tub with a roman tub faucet or a shower system you better figure out the load.i try to steer them to a hybrid unit like the polaris or the vertex. both have like 96% efficiency, can usually use the existing gas line,and put out a ton of hot water.
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