This is the single most underestimated line item in a tankless conversion, and the reason is that the old equipment set expectations badly. A 40 gallon atmospheric gas tank fires at roughly 40,000 BTU per hour. A whole-house tankless unit fires at up to about 199,000. Natural gas carries roughly 1,000 BTU per cubic foot, so you are going from about 40 cubic feet per hour to nearly 200. The half-inch branch that fed the tank for fifteen years was never asked to do anything remotely like that.
Sizing is not a rule of thumb and it is not the diameter of the pipe at the appliance. Gas pipe is sized by the longest-length method: you find the developed length from the meter to the most remote appliance, then size every section against the load it carries at that length, including the equivalent length that fittings add. For Schedule 40 steel pipe at the common 0.5 inch water column pressure drop, the published capacities tell a blunt story. Half-inch pipe carries about 131 CFH at 10 feet and only about 62 at 40 feet. Three-quarter inch carries about 273 at 10 feet and 129 at 40. One-inch carries about 514 at 10 feet and 243 at 40. Against a demand near 199 CFH, a 199,000 BTU unit more than 20 feet from the meter generally needs 1-inch pipe, not 3/4-inch, and that surprises a lot of people who assumed 3/4 was automatically enough.
The other half of the calculation is everything else on the system. A tankless unit in a Frisco house is competing with a furnace, sometimes two, plus a range, a dryer, a fireplace and occasionally a pool heater or a generator. The branch sizing has to account for the full connected load on shared sections, and the meter itself has a capacity. When the total load exceeds what the existing meter can deliver, that is a utility conversation, not a plumbing one, and we would rather identify it during the assessment than after the equipment is on the wall.
There is usually more than one way to solve it. Upsizing the existing branch is the obvious route. Running a dedicated line from the meter to the heater is often cleaner in a slab-on-grade house where the existing branch is buried. And in tighter situations, a 2 psi system with a pound-to-inches regulator at the appliance lets a smaller pipe carry the same load, because capacity scales with available pressure drop. We price the options rather than defaulting to the one that is easiest for us.