INSTANT HOT WATER SYSTEMS
Instant hot water systems can be used to minimize water use when faucets and shower heads are located far away from the water heater; they can be based on recirculating systems or in-point-of use electric water heaters.
Point-of-use water heaters are typically small electric water heaters designed to be used for a specific shower head or a specific sink (or to two sinks or shower heads at a time). Most of them are tankless water heaters, but there are models with a small tank.
This page deals point-of-use heater systems. For information on recirculating systems, see: Hot water circulating systems.
uses and advantages of instant hot water systems
If the line waters are too long, if the system looses too much cold water, of if the main water heater doesn’t provide enough hot water to some parts of the home, point-of-use heaters can make sense.
Since they are small units, for special cases and uses, electric point-of-use units can be an energy-efficient solution (contrary to conventional whole-house electric heaters). Instead of a large and powerful system to provide hot water to the whole home, you may have a smaller system supplemented by one or more electric point-of-use heaters.
The existing models can easily be plugged into a common outlet.
The best rated models
Bosch and Ariston are the top point-of-use manufacturers (they are closely associated in this type of appliances: Bosch models are manufactured by the Italian MTS, the company behind the Ariston models). 
Both Ariston and Bosch models are designed to fit under a sink and to be plugged into an outlet or, in some models, wired to a circuit box. Most models are tankless, but some Ariston models use a tiny tank.
The best rated models are the 2.5-gallon Bosch-Ariston GL2.5, the 4-gallon Bosch-Ariston GL4 and the 7-gallon Bosch-Ariston GL6 Plus. Their price range is from $150 to $200. To see ratings and reviews of these instant hot water electric heaters, you may take a look at the customer reviews in Amazon: Electric Point of Use Ratings and Customer Reviews.
Bosh has a more powerful model (the 120-amp Bosch PowerStar AE125) to serve two sinks, but it is significantly more expensive (above $600) and also more difficult to install. It has mixed reviews in Amazon.com.
Other brands
Other brands with instant hot water point of use heaters: A. O. Smith, Bradford White, Eemax, Eltron, Insinkerator, Ruud, Rheem, State Industries, Stibel…
See also:
Water Heater Energy Efficiency
Tankless Water Heaters: Advantages and Disadvantages
Tank vs. Tankless water heaters
New Water Heaters: Condensing and Standard
Solar Water Heaters: Advantages and Disadvantages
Space Heating with Water Heaters
Water Heaters Size
Water Heater Manufacturers
Water Heater Prices
Replacing Water Heaters Options
Electric Water Heaters vs. Gas
Types of Electric Water Heaters
