Water heaters An electric water heater works essentially the same way as a gas water heater. It brings cold water in through the dip tube (1) and heats it using the electric heating elements (2) inside of the tank. The hot water rises in the tank and is moved throughout the home through the heat-out pipe (3).

As with the gas water heater, an electric water heater has a thermostat (4), temperature and pressure relief valve (5), a drain valve (6), the tank is insulated (7), and it has an anode rod (8).  The only big difference is the water is heated by electric elements and is thus plugged into a power supply (9).