I installed a GE Hybrid, Water Heater 2 yr's ago, cost me $199 after rebates, so I dont care if it stop's working have the electric coil to use, really never saw my electric bill go down, also I've noticed the fan when in heat pump mode is alot quieter than it used to be, I cleaned the filter once when the alarm came onSorry to pull up a post from two weeks ago, but just getting back to the forum. An on-demand electric water heater pulls an incredible amontt of energy when it's needed, so even running the cable is a chore. If possible, NG or propane better for on demand systems. May I propose a heat pump style hot water heater if you're going electric? It takes heat from the surrounding air and uses it to heat hot water, very efficiently. We installed one last year and are thrilled with it. Removes excess heat from the house in the summer, and in winter our pellet stoves are producing plenty of heat, and we certainly don't notice the "heat loss" from the air. Amd if demand is high (e.g., guests all taking showers, etc), they have an electric heating element just like a regular electric water heater.