Replace closet install tank with indoor or outdoor tankless?

[brucelamond]

Hi,
Hopefully a straightforward question for someone in the know, but I don't want to pull the trigger on buying a unit without getting some expert opinion.
I'm planning to replace a standard natural gas tank heater with a tankless upgrade. My setup is as pictured and as you can see we have several vents in place; the closet is completely external to the house, but I'm unclear as to whether I should buy an indoor or outdoor tankless. We have a big rebate available from the local utility so I can afford to go with the more expensive outdoor version, but do I even have that option, or do I have to go with an indoor version inside this closet space?
Thanks in advance,
Bruce

 

[breplum]

In situations like yours, we use an indoor unit and use a handful of techniques to run the 2" PVC flue vent using the existing roof jack and top.
Be aware that it is not recommended to mount tankless on bedroom walls bc of noise.
Also know you need both electricity and a gas upgrade unless you have a very low usage profile, where you could use a Noritz EZTR to run one fixture at a time.
Otherwise, go premium upgrade to Navien NPE series. or if you have photovoltaic, go with a heat pump water heater.
Not a recommended diy process in any case.

 

[JG plumbing]

I don't see tankless as an upgrade.

 

[Twowaxhack]

I don't see tankless as an upgrade.

I don’t either unless a person needs endless hot water. Costs more to install and initially purchase.

I don’t believe the extra cost of the tankless would ever pay for itself through energy savings.

Maybe it could some places but here it usually doesn’t.

The tankless that I’ve installed has cost 2-3 times what a 50 gal tank would’ve cost installed after it’s all said and done. So that’s 2-3k vs 1k.

God help you if it needs service......get you checkbook out.

 

[brucelamond]

Thanks all for the sagely advice. I wouldn't have considered an upgrade expect that the city currently has rebates of $800-1000 on offer. Seems like the install costs might still be significant though. I'm thinking I'll just stick with the current tank until it needs replacing, then consider the options again at that time.

Thanks again