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also know as "on demand water heaters" they replace your normal storage tank style water heater. it cost about $900 at home depot/lowes
Yes and it’s much safer also.
Yes, it totally replaces the old storage tank/heater. It saves you money by not keeping the tank of water hot all the time. For more info, check out my source.
They’re expensive and expensive to install (need 3/4" water and gas lines). Some also need to have a 120-volt outlet nearby for the electric starter. But they’re awesome. They’re about the size of a small carry-on suitcase and mount on a wall. So, you get the extra space in your water heater closet and you don’t have to strap them down for seismic protection. I’ve had one for years and wouldn’t want anything else.