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No electricity is an issue - storage HWS definitely win on that one. But are blackouts that frequent these days? Just go old school, boil water on the stove and use a bucket :D

Get a Rinnai instant if you can. Rinnai also make indoor units but these need an additional flue kit. http://www.rinnai.com.au/hot-water/continuous-flow-hot-water-systems/infinity/26-(internal)/ But the problem may be the existing gas pipe is not large enough for the rinnai.