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Originally Posted by dad911
Plus - No energy unless demanded. Size allows it to be located closer to point of use.
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Very true and good points
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Too large/not heat properly has not been an issue in our experience.
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My experience: At work we installed a large tankless unit to help clean equipment and service a bathroom. Over time the equipment went elsewhere leaving only the need to service the one hole bathroom and shower. The unit was unable to provide adequate hot water for the lower flows. When we replaced with a unit sized for the demand, much better.