Our North Point came with the 3rd Gen, and as mentioned above, ours had a stuck solenoid, so I banged on the unit a couple times and it fired up. That was two trips ago, and we haven't had an issue since. I did let the dealer know that while I was willing to stick with it for now, if the issue arrises again, they'll need to make a repair/swap. But so far, it works great (once that slug of cold water comes through! Which, by the way, if trying to conserve water and shutting off the shower, will happen every time you turn the shower back on as the heater cycles off and it takes a very short time to heat the water back up, but in the meantime, some "cooler" water has made its way through...)! And also as said above, bang on the solenoids with something substantial. I believe I also used a crescent wrench!