Sharing my recent experience. We had a 75 gal gas fired hot water heater leak. Went to store with intention of replacing it with new tankless system. Cost of tankless including equipment and install from $3800 to $4300 (got 4 difference quotes). And federal rebate calculation which has a very convoluted calculation was only $700. TOTAL Cost for traditional (installation and equipment) = $1200 . Man it makes doing the right thing impossible these days.