Jim Jones said:
Although I have an under-counter heater, I haven't installed it because there is a simpler source of water at the correct temperature. I try to keep the darkroom at a temperature practical for film development. A supply of water stored in the darkroom is the same temperature as the chemicals and film tank. Washing the prints in trays requires only a modest amount of water.
Jim, this is the beauty of basement darkrooms. It is so much easier and cost efficient to keep the temperature "photo" ready. In the winter, spring, and fall, it is simply to run everything at 68F. Late last summer (when I completed building it), with the exception of the hottest week of the year it stayed at 68F with the assist of a small window AC that would kick on for a few hours about mid-day. The "hot week" everything ran at 72F.
I have used the in-line units in materials analysis labs, and they are pretty good for what they are intended for: the provision of small quantites of warm/hot water. Most often they are sufficient for a tempering bath or a small quantity of water for preparing solutions. And as noted, depending on the incoming water temperature, balancing of wash water. Continuous flow of "hot" water? Usually not. Here is a selection of conventional tank solutions:
http://www.americanwaterheater.com/WHBrowser/res_elec.cfm
There are small under sink hot water heaters of 2 to 20 gallons so. Intended for "immediate" hot supply in bathroom and wet bar sinks, they can do the same; provide a small quantity of hot water for a tempering bath or mix-up. When the tank runs out, it takes quite a while for the temperature to recover. They can be cost ineffective as well, but the larger ones can supply quite a darkroom operation quite well.
The next jump up is the compact, or "mobile home" size heater. These are generally 30-40 gallon, and are squat for undercounter, or tall and slim for corner mount. Usually more hot water than you will ever need, but the space and need must be there.
Tying into the existing residential HW system is always the better and most cost effective solution. IF possible.
Regardless of the solution chosen, THIS IS THE MOST IMPORTANT PART!!! The plumbing from the HW heater must be of an approved type. White PVC is just fine for cold water supply in a home. But, never directly connect a PVC pipe or fitting to the cold water inlet of a water heater, or use any kind of white schedule 40 anywhere in the hot water circuit. This stuff behaves funny above 100F, and will start to leak around any screw type fitting in no time at all. ALWAYS use CPVC (the creme colored stuff), copper line, or galvanized pipe for hot water connections. Also, NEVER USE SCHEDULE 20 PVC pipe for pressurized lines!!! This stuff is for waste connections and venting only.