Hi, have a 34-year-old oil water heater. We are starting to see sediment in the hot water and I’d eventually want to switch from oil to gas, which is accessible. Financially, we want to put that job off a few years and to to get an oil water heater now and then switch to gas in a few years seems wasteful. My thought was to get an electric tankless water heater now and switch the heat and kitchen to gas when we can afford it. My basement is also very small, so tankless will provide additional room. The house has one and a half baths and four bedrooms. Does electric tankless make sense and how do you decide what size the tankless must be to provide the right amount of how water?
Since you have a very old water heater, it's smart to replace it now before it starts to leak. If you wait and it does leak, you're going to be facing an emergency repair, which can cost a heck of a lot more!
It's not a great idea to install an electric tankless water heater, but I don't think you'll really need one. It seems like you think that you need to convert the entire house to gas heat when adding a water heater. In our experience, gas utilities will run the gas line to your house if you agree to hook it up to one appliance, like a water heater!
Given that, your best bet is to have the line run to your house and replace the old oil water heater right now.
By the way, electric tankless water heaters are not efficient and would be a very poor choice. They can't be compared in any way shape or form with a gas tankless water heater. Once the gas line is run, you can decide if you'd like to install a gas tankless water heater, or the more old fashion tank-style water heater.
If you do decide to stay with electric your best option would be an electric heat pump water heater. These are much more efficient than standard water heaters and have come down in price.
Yes, I think tankless water heater is a good option. Since you have a very old water heater, I think you need to replace it soon. If you want, you can check about the water heater repair service NJ to get professional services. They will also advise you with more correct information.