Tankless, or on demand, heaters are a strange lot and take a lot of getting no used to. We have the Girard Gen II and once we got through the learning curve and replaced the faulty switches and sensors it works great, though contrary to logic. First, remember the temp is meant to be set so you use only hot water, not mixed. You can get the results you described if you're mixing cold water in, like you would do in your house. We've found we can slowly blend in just a smudge of cold at the faucet if we really need to but you have to be gentle with it. Remember the temp adjustment us not for a specific water temp like your house, but t's actually for the Delta T, or temp rise from incoming water temp to usage temp. If you have 65F incoming water, you only want about 40 degrees rise to get 105F water at the faucet. In the winter, incoming temps of 45F will require more temp rise. You can increase the temp rise to some extent with the adjustment switch, but you can also make the water hotter by simply reducing the flow at the shower head to make the water go through the heat exchanger slower. Hope this helps some. Good luck!
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2015 Legacy SR340 360RB with 2014 Wrangler Unlimited Toad
Gigi, Poppy and Sadie the Jack Russell (all 14 lbs of her)
2015 Legacy SR340 360RB
2014 Jeep Wrangler Unlimited Toad
Gigi, Poppy and Sadie Lady...On the road, but not full time!