How does it work? Did you ever wonder how a water heater works?
As cold water comes in, it remains at the bottom of the tank because it is denser than hot water. If you use the hot water faster than the heating elements or gas burner can heat the incoming cold water, and if you consume all of the hot water that the tank holds, you run out of hot water, perhaps in the middle of your shower!
If this seems to happen too often, it could mean that the bottom heating element of your electric water heater has burned out or that your water heater is too small for your home. Of course it could just mean that you are taking really, really long showers!
You can see in the diagram that a water heater uses nothing more than the "heat rises" principle to separate hot water from cold water in the tank.
The thermostat controls the temperature of the water inside the tank. Normally you can set the temperature between 120 and 160 degrees Fahrenheit.
It is generally recommended that you keep the temperature between 120 and 140 degrees Fahrenheit -- especially if there are children living in the house -- to prevent scalding. It also saves energy.
Courtesy howstuffworks.com
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