Here are a few reasons why I went with standard submersible aquarium heaters:
1. Upfront cost- I was able to buy 1,800 watts of standard electric aquarium heaters and a quality temp controller for ~$200. The In-line heaters that I looked at with similar specs (1,500w) were upwards of $600+. It's always a good idea to have a back-up heating system, so multiply the cost difference x 2 and you have $800 in savings.
2. Standard electric aquarium heaters are easily swapped out- depending on how you have them plumbed, if an inline heater fails, it's a bit more work than just pulling out a submersible heater.
3. Redundancy- having multiple standard heaters provides a little insurance versus just running one large in-line heater. If your one larger heater fails and you don’t notice for a while, you could have problems.
4. Natural gas in my area would cost about 1/4 what electric heaters cost, but running a gas line to the tank and plumbing in a natural gas fired heating unit had high initial setup costs that would take many years for a return on investment.
5. I looked into heat pumps, but the model that the manufacturer recommended was several thousand dollars. The return on investment would have taken decades. Most heat pumps designed for pools would've been overkill on a tank, but Aqualogic makes some smaller models in case you are interested:
http://www.aqualogicinc.com/heat-pumps.htm. They are expensive though.
I'm no PHD in thermodynamics, so I have a question for you guys saying that contact time is important: where does the energy produced by an in-line heater go if the flow is too quick?
For example, a 1.5KW in-line heater is producing 1.5KW of energy per hour, so where is that 1.5KW going if not into the water?
I can see how contact time would be relevant if the water were not being recirculated (like in a tankless hot water heater delivering water to a faucet), but since the water is circulating, IMO contact time shouldn't matter. Whatever amount of energy the unit is drawing is being absorbed into the water regardless of flow, right? What am I missing?