Everyone I Know that has an instant hot water heater loves it and they say the cost to run it is less. But they are expensive.
That's what I've heard, too. My understanding is that they're not bad, individually, to buy, but if you have lots of faucets they start to add up. People I know love their systems, though.
If it is hot only and if the gritty stuff that gets trapped in the screens in the spout is kind of a white plastic, then it is likely you have and older OA Smith water heater (various brands made by them) and the white plastic down tube is disintegrating inside the heater and time for replacement. This was a known defect but too late for any compensation. If the gritty stuff is rusty or metallic then your pipes are old. (like me)
Electric water heaters have an sacrificial electrode that screws in from the top that is designed to take the punishment of the electrical fields created from the elements to protect and prolong their lifespan. It sounds like it has deteriorated to the point of rusting nearly though and needs replacing, but as your heater is as old as it is your best bet is to simply replace or have it replaced as some of the older units are energy robbers anyway. The cost of a new electric heater will more than pay for itself within three years in power savings alone. I hope this helps.
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