Pull the wires off of the lower element. Use a reliable Ohm meter and measure the resistance across the two terminals. It should measure between 8 and 12 ohms If it is like zero ohms it is bad, if it is like 30 ohms it is bad. Measuer between the tank and either terminal any conductivity is bad (shorted to ground internally) There are four controls on the heater. The top control module has three components in it, a thermostat for the top element, a control switcher from top element to bottom, and a high limit temperature switch. The bottom unit has only a thermostat in it.
OPERATION Starting with a cold tank (off for a day or so), and turning on the breaker: The top element will be on and it will heat up the top water in the tank until it is hot enough to use. The top thermostat then clicks off, and the switcher flips to the bottom element. The bottom element then heats until its thermostat reaches temp, and then it opens. The lower element is then off (the entire heater full of water is now hot, and no electricity is going through the elements. (there will be 115 to ground at the screws on the elements, but it will not be operating, there will be no connection to neutral, or to the other leg of the 220) As water is used, the lower element and its thermostat get cold from incoming cold water. The lower thermostat clicks on, and 220 goes to the lower element. If a large volume of water is used, the top controller thermostat will click switching the power to the top element, and turning on the top element power. At no time will both be operating at the same time, the load would be excessive. As the top becomes hot again, the top controller switches off, and turns on the bottom element as above from cold.
The overheat controller will pop a red button when excessive heat (near boiling) occurs in the tank. it is not an elecrtical load sensor, it detects excess temperature, and shuts off the entire water heater until reset. If this button repeatedly pops, the thermostat/s are failing to control the temp. (either one can fail causing the button to pop) I hope this helps, Jim
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