Our water heater is showing serious signs of slowing down. I had planned to replace it with an electric tankless model water heater I read about on Ebay (Stiebel-Eltron - Tempra 36 -36 KW?).

I spoke to a friend who said there had been a lot of fires started by the whole-house electric tankless heaters, but the gas ones were better. I react to gas, so it would have to be placed outside (and we're currently all electric)and not in the laundry area where the current hw tank and the breaker box is located.

But, I've searched on the web and can find no reference to fires started by these electric water heaters, only some by the inferior wiring used to install some.

Anyone have experience with any of this? I'd like to avoid the fire ;-).
Sara