How To Replace A Water Heater Thermostat


Close-up photo of a water heater thermostat

September 28, 2026

If you live in the Bay Area and you’re dealing with water heater issues, it could be due to a faulty thermostat, which can cause your water heater to run inefficiently or stop working altogether.

When it’s time for a water heater thermostat replacement, it’s important to know how to do it safely and correctly. Learn the signs to look for that may indicate your water heater thermostat is failing, common thermostat-related problems, how to replace it, and when to call on the highly skilled plumbers at Service Champions for help.

What Does a Water Heater Thermostat Do?

A water heater thermostat is a temperature-activated switch that continuously monitors and regulates the temperature of the water you use in your Bay Area home. The exact mechanism and how it works depend on which type of water heater you own.

Electric water heaters

An electric water heater thermostat uses a surface-mounted sensor that’s pressed tightly against the exterior of the metal tank. These thermostats use a disc made of two different metals that snap open or closed as the metals expand when heated. Most electric water heaters have two thermostats, one for each heating element. The upper water heater thermostat is the main controller that heats the top of the tank first, then redirects power down to the lower water heater thermostat and element.

Gas water heaters

A gas water heater uses a mechanical probe thermostat that sits inside the water tank. This thermostat has a copper tube and an inner rod made of a different material. As the water temperature rises and falls, the tube and rod expand and contract, pushing or releasing a lever that opens or closes the gas valve. When it detects cold water, it opens the valve and allows gas to flow to the main burner to heat your water supply.

Signs Your Water Heater Thermostat May Be Failing

Most water heater thermostats need to be replaced every 10 to 15 years. Before you replace your water heater thermostat, look for these signs that it may be failing:

  • Inconsistent temperatures: If your water keeps going from extremely hot to lukewarm, you may need to replace the thermostat or schedule professional water heater repair.
  • No hot water: If your water heater isn’t heating water at all, it could be because the thermostat isn't signaling the heating elements to warm the water.
  • High energy bills: When the thermostat malfunctions, it can cause the heating elements to run unnecessarily, reducing efficiency and leading to higher-than-normal energy bills.
  • Reset button keeps tripping: If the upper thermostat keeps tripping the high-limit reset button, it’s a sign it needs repair or replacement.
  • The water is too hot: When your thermostat stops sensing heat, it could allow the heating elements to keep running, making your water extremely hot and dangerous to use.

Safety Steps Before Working on a Water Heater

Before beginning any water heater troubleshooting or making a water heater temperature adjustment, it’s important to take a few safety precautions:

  • For electric water heater repair, switch the water heater off and disconnect the power by shutting off the circuit breaker inside your electrical panel. 
  • For a gas water heater, rotate the gas control knob to the “OFF” position.
  • Find the shut-off valve on your cold water supply line, usually at the top of the water heater, and turn it clockwise until it’s completely closed.
  • Turn on a hot water faucet somewhere in your home and leave it running to prevent vacuum pressure from forming.
  • Let your water heater tank cool down for several hours to prevent burns or scaling.

How To Identify Upper and Lower Thermostats

Identifying upper and lower thermostats on your electric water heater depends on the wiring setup, their location on the tank, and the presence of the red reset button. For most water heaters, the upper thermostat is located behind the main access panel and features a large, red reset button. The lower thermostat is typically located behind the bottom panel and doesn’t have a red reset button.

Tools Commonly Used During Thermostat Replacement

If you have a gas water heater, we recommend hiring a professional plumber to replace your water heater or thermostat. Before replacing an electric water heater thermostat, gather these tools:

  • Flat head and Phillips head screwdriver to remove the access panel(s).
  • Multimeter to confirm that the power supply to the water heater is completely shut off at the breaker.
  • Needle-nose pliers to move the thermostat’s retaining clip.
  • Wire strippers, wire cutters, and electrical tape.

How Water Heater Thermostats Control Temperature

Water heater thermostats sense the temperature of the tank or the water inside, which automatically signals the heating element or gas valve to turn on or off. Electric water heater thermostats are located outside the tank and sense the water temperature through conduction. Gas water heater thermostats sense the temperature via a special probe submerged directly inside the tank.

When a Thermostat Is Not the Real Problem

Not all hot water problems are related to the thermostat. Many parts of the Bay Area have hard water, which causes sediment buildup that affects other components, such as the lower heating element. A cracked or broken dip tube can affect water heater performance, and a faulty thermocouple on gas water heaters also poses problems. If the hot and cold pipes are accidentally cross-connected in your home, it can cause cold water to bleed into the hot water lines.

The Relationship Between Heating Elements and Thermostats

In an electric water heater, the thermostat is the central control that determines when and how hot water is supplied, and the heating element converts electricity to heat. Both components work together to maintain a safe, consistent water temperature.

The thermostat is placed just outside the tank to monitor and control the temperature, and when the water drops below the set temperature, it triggers a switch that powers the heating element. When the top of the tank is heated, the upper thermostat turns off the top element and redirects power to the lower thermostat and heating element.

All upper thermostats have a high-limit safety switch that trips and cuts power to the unit and heating elements when the water gets too hot.

How To Test a Water Heater Thermostat

Occasionally, testing your thermostat is a good part of water heater maintenance. Follow these steps to ensure you test it correctly:

  • Step one: Turn off the water heater at the breaker in the main electrical panel.
  • Step two: Remove the upper and lower metal access panels, fold back the insulation, and gently remove the plastic covers.
  • Step three: Take a photo of the wiring, then unscrew and detach the wires from the thermostat terminals.
  • Step four: Turn your multimeter to the ohms, or resistance setting.
  • Step five: Test the upper thermostat by placing one meter lead on the reset button and the other on the left-side power terminal.
  • Step six: To test the thermostat contacts, place the meter leads across the terminal screws and turn the temperature dial back and forth to listen for a click, which indicates the thermostat is functioning mechanically.

When testing the upper thermostat, if the meter reads near zero, the switch is good, but if it reads “OL,” the switch may be tripped or broken. When testing the contacts, if the meter reads OL at all times and doesn’t fluctuate between zero and OL, the thermostat is faulty.

Common Mistakes To Avoid During Replacement

Avoid these common mistakes when replacing your water heater thermostat:

  • Failing to shut off the power or turn off the gas supply valve before doing work
  • Not letting the tank cool down to prevent scalding
  • Failing to take a picture of the wiring before removing it from the terminals
  • Setting the thermostat temperature too high or too low
  • Installing the wrong thermostat for your water heater's make and model

Why Homeowners Trust Service Champions

Homeowners trust Service Champions because we offer:

  • Flexible financing and payment options.
  • Our MVP+ Membership Program includes plumbing inspections.
  • A rigorous training program for plumbers at our state-of-the-art Champions University.
  • Exceptional quality workmanship with every job.

Need Help Diagnosing a Water Heater Problem? Schedule a Water Heater Inspection

Choose Service Champions for heating, cooling, plumbing, electrical, insulation, and indoor air quality across the Sacramento area, South Bay, Concord, and the East Bay.

Contact Service Champions today!

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