Well - I thought this was amazing. I have wanted to do this, but have not arrived at that point in my set up.
Unsure your cost's of electricity, but up here in Eastern Ontario, it is about $0.08/kwh. Gas is significantly cheaper at the moment, (even though I don't have access to this since I am rural) and even before the price fell through the floor. Leveraging a Naturual Gas heater as opposed to an electric is an automatic win IMO.
Also, you are leveraging the heated water that is just sitting in the tank, waiting to be used... again - perfect.
Great idea - thank you for the parts list, you will make my life simpler when I run to Home Depot next month.
Unsure really how else one could lower costs further than this.... not including Solar, which I view the ROI as being to little. A basic solar set up in the summer months might work, but in Ontario - summer only lasts about 2 months.
Anyways -enough with my rambling - great idea - congrats - thank you for documenting.