Thanks Daox & Jeff5may
There are a lot of advantages with this type of water heating. So far the parents seem to be happy with the creation after a couple of showers have been made. They had mentioned they didn't add much cold to the mix for the shower water temp. I had explained to them about the capabilities of a heat-pump water heater and they understood it. Basically, in one way you pay extra for the higher water temperature from losses in addition to more expensive type fuels only to add cold water to make it comfortable. Its wasteful.
We can install a timer to take advantage of the less expensive time of use costs.
The heat-pump will reduce the humidity of the basement.
The COP of about 2.5 means better efficiency compared to a electric water-heater. For $1.00 worth of electricity you get 2.5 time the heat.
The latent heat in humid air is another nice little advantage.
Randen