Being rid of the tank is something many people dream about. The tank is inconvenient (if it runs short of water) and takes up plenty of space. You are also heating water that you do not use - you have to keep forty, sixty or more gallons of hot water on standby. So are tankless hot water heaters electric powered units the answer?
If you are looking to replace a big (80 gallon) tank, then the tankless electric water heater is probably not the answer you are looking for. Although there are units that claim whole house capabilities, there are very few that really can replace a big tank. Some experts would argue that you would be better off simply swapping your old tank for a new super-efficient tank.
In the whole-house hot water field, the tankless gas water heater still is the favorite, but they can cost a pretty packet and not everyone has natural gas supplied to their door, nor wants the trouble of propane.
There are other smart solutions however - electric on demand water heaters are ideal as boosters or single unit fixtures. In other words you can fit one that will ease the hot water burden on the tank. This is ideal is situations where there is a new high demand for hot water (all you new whirlpool owners might recognize this), and in places where space is an issue. The electric tankless units are often really compact. They are also easy to fit, since they only need an electricity supply to heat the water.