I'm looking at the Takagi TM1 where I want a high flow rate but Takagi has a TK2 which is designed for smaller apps. I went to the factory in Irvine, Ca. and had them demo this system for me and feel its time has come in the States. These things have been around Europe and Asia for years apparently. Most plumbers I have dealt w/ don't know squat about them and put them down. I think they make sense even though my savings on the TM1 based on government testing is about $100/yr over a tank based system. But the gov test seems to me to be way too sanitary and not in tune w/ what really happens in the real world with water heaters. It is also based on last years gas prices which will only increase, albeit slowly. These things run on propane too. If you want to talk w/ a technical guy abt these devices, call Josh Wiles @(949)453-8388. He's the Takagi tech support guy in Irvine and he was very helpful. Irvine is the USA distrib point for Takagi. It has a 1 yr warr on the system and a 5 yr warr on the heat exchanger & I'm told they have had few probs w/ the electronics and most issues pertain to installation such as undersizing the gas feed. They need a high capacity gas feed for their high btu instantaneous heating to be successful. Josh will be able to tell you who your distributor is too. I have found a plumber here in San Clemente who has installed quite a few of these devices and he has had a good experience. There are other mfgs of these things. I have not tracked it down, but I understand Bob Villa showcased one and it was designed for smaller apps than mine...like a standalone sink or shower. My app is for a 3k sqft house w/ 3 baths, washing machine & dishwasher. The TM1 seems to be able to service this.