I went with an on demand system for one reason, convenience. If your thinking about an on demand system for savings, I would think twice. The energy savings of an on demand system does not justify the upfront cost. You will never make your money back in the energy savings.
For us it was a simple decision. We initially had a small electric hot water tank under our camp. Didn't have room for anything larger. We were constantly running out of hot water and it was extremely inefficient in an outdoors environment. Our plumber recommended the on demand system and he was spot on! It's a small wall mounted unit that we installed inside in our bathroom. We never run out of hot water now, it's efficient, and takes seconds to winterize. It has worked flawlessly for eight years now and we are thrilled with it!
Dan
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It's Always Sunny On Welch Island!! 
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