From my experience inline systems are LESS efficient at actually heating the water, (fake numbers here) lets say it takes 1500 btu's of gas to heat 60 g from 65 to 120 where in a tank the surface area allows only 1000 btu's to do the same work... the savings comes in the fact that it takes an additional 750-1000 btu's to keep the water at 120 for 24 hours. Like I said fake numbers but that is my understanding. I could be wrong as I am not a physicist and may just be beliving propaganda as to the benefits of the inline systems. Fluffa you all.
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