Cheapest solution (and the quickest) is to replace same for same . The Mj rating of the unit you replace any gas appliance with will determine the size of the pipe you need from the meter to the unit .An instant unit has a far greater demand than a storage unit so bigger pipe . Lenght of pipe and demand along the pipe . Should only be 1/2 inch for about a meter or so , thats all . Next issue is that the exist gas service has to be tested , if things are done by the rules
Any gas service that is old ie still in gal pipe might not pass inspection . Also if a plumber is doing things properly the sizing should be recalculated for the whole house and since there so many poorly designed gas services out there it might not pass .
A 3/4 gas pipe may run an instantaneous HWS if installed close by to your meter , but whack it down the back and look out
Now ?? How far is the flue from a door window or opening ?? This too can change a bit depending on the Mj rating .
Sales pitches from the manufacturers don't allow much for the installation costs associated with the plumbing regulations .