My son-in-law did away with his hot water heater and replaced it with an electric "heat-on-demand" unit popular in Europe. It uses 220V to quickly heat the water in the pipe as it comes out the faucet. Although that is still electric heat it is only "on" when you turn on the hot water line. In my house in winter you have to run the hot water a few minutes to get the hot water from the heater to the wash basin at the other end of the house, thus wasting water.

Don Shillady
Retired Scientist/teen rodder