I'm re-opening a fairly old thread here, but just noticed the topic.
During my consulting days, I worked a fair bit in Puerto Rico. The common way to get hot water was to have a water line (mains pressure, or regulated down from that) that went to a tank on the roof (most single-family homes in Puerto Rico are made of concrete, with a flat horizontal concrete roof). The tank was painted black.
Turning a hot water line on inside the house delivered water from the tank to (the laundry, shower or whatever). It worked and was low-tech, but don't try taking a shower in the morning after a dark night! Or after everyone else had taken a long shower.
In northern climates, your peak water temperature will of course not be as high as in Puerto Rico. The whole system would need to be drained during a northern winter.