I have some anecdotal information on tankless gas water heaters.
I know of several people who have gotten them, and they all love the "never run out of hot water feature".
If your household uses a set amount of hot water per month, they are cheaper to operate than a tank style water heater. My fear would be that any savings would evaporate, because the "never run out of hot water feature" will encourage you to use more hot water...meaning you'll use more energy and more water.
I believe there are tax credits available to help defray the higher cost of these units and some utilities are also offering rebates to encourage the use of them. Most of these units are going to have an energy factor of higher than .62 and should be energy star rated.
I've heard rumors of people having problems with the ignition system on these. If true, than it would be tough to realize any savings, as one service call will eat up all potential energy $ savings for several years.
A whole house unit is rated at about 200,000 BTU/hour, which is about twice what a large furnace is rated at...so you will definitely want to contact your gas company and see if your meter is big enough. You may need to install larger piping into your house from the meter. I would DISCOURAGE WITH ALL MY SOUL anyone requesting the gas company to raise the pressure in order to run more gas through the existing piping. It would require individual regulators in front of every appliance in order to accomplish it. A 415 series meter on inches water column will handle the delivery quite nicely as long as the customer comes out of it with 1" or larger pipe (your run may vary.)
To me...a tankless water heater makes little sense for a retrofit unless the endless hot water is a big deal to you. And, as my kids have become teenagers, I've finally run into that "cold shower moment" and it's no fun at all! So I can see the appeal. Just don't sit there and think it's going to save you a ton of money...because it isn't. Most of the tankless water heater savings ads I have seen are deceptive. They'll say "our gas tankless water heater can save you 50% compared to your tank style electric water heater". Well, DUH...any gas water heater will save you half vs an electric water heater. The savings gas tankless vs gas tank style is much more modest....if you don't use more hot water through it.
The tankless units also do require a few seconds of water flow before they can kick on and start heating. This may be a drawback for some people too.
BTW...there is a new water heater player on the market now...a fully condensing gas tank style water heater. The price? I checked out one that was a bit over $3000. WOW!
Phil