Tulip, I know the electric tankless heaters aren't nearly as efficient as gas, but is there another reason you say to stay away from them?
I ask because for some stupid reason our house was built with a long run from the water heater to the kitchen ... with the pipes next to the exterior walls. It can take three or four minutes of running the tap on full blast to get hot water out of the tap, which is NOT good when you live in an area with a water shortage. 
Gas is an option, but there's no gas to the house now, so it would involve a lot of digging and drilling and knocking out walls. We're definitely considering solar, but even if we did, with the way the pipes are, we'd still need to re-heat the water by the time it got to the kitchen.
Speed comes from what you put behind you. - Judi Ketteler