You walk into the basement and see a puddle under your water heater. Water is dripping from the upper heating element cover. Not a slow weep – a steady drip. If you own a Rheem Performance Plus, you are not alone. This is one of the most common failure points on electric water heaters, and it usually has a simple cause.
But here is the thing: a leak at the upper element does not always mean your tank is shot. In most cases, you can fix it in under an hour with basic tools and a replacement part. This article walks you through exactly what causes that leak, how to tell if it is just the element or a bigger problem, and how to perform the repair yourself. You will save the cost of a plumber and extend the life of your water heater.
NISHCON
EWH-02 Electric Water Heater Tune-Up Kit By NISHCON, Fit for Most Brands Water Heaters Includes Upper & Lower Heater Thermostat and Protective Covers, Water Heater Heating Elements
- Value Pack: Electric Water Heater Tune-Up Kit includes (2) 2× 13-9/16inch Water Heater Element with Gaskets, (1)Upper Water Heater…
- Excellent Choice: Copper heating element with threaded gasket operates at 240V 4500W (208V 3800W) Screw-in design provides fast, c…
- More Practical: We also chrome-plated the heating zones to prolong the life of the heating elements.EWH-02 has added two terminalp…
By the end, you will know the difference between a bad gasket, a corroded element, and a cracked tank – and which one you can fix today.
If you already know you need replacement parts, a kit like the NISHCON EWH-02 Electric Water Heater Tune-Up Kit (available on Amazon) includes everything for both upper and lower elements: two 4500W copper heating elements, two thermostats with protective covers, and gaskets. It fits most 30+ gallon electric water heaters including Rheem, AO Smith, Whirlpool, and GE. You get one box instead of chasing multiple parts at the hardware store.
Why Water Leaks Through the Upper Heating Element
The upper heating element sits inside the tank, surrounded by water. It is sealed from the outside by a rubber or silicone gasket, held tight against the tank by a large brass or steel nut. When that seal fails, water finds the path of least resistance – out the cover plate.
Four things cause that seal to break:
- Gasket deterioration. Heat and age make the rubber hard and brittle. After five to seven years, gaskets lose their flexibility and stop sealing.
- Element corrosion. The element itself can corrode where it meets the gasket, creating a rough surface that cannot seal.
- Loose element. Thermal expansion and contraction loosen the element nut over time. A loose nut means a gap.
- Tank corrosion around the opening. Less common, but serious. Rust eats away the steel tank flange where the element mounts, making a proper seal impossible.
In most Rheem Performance Plus models, the upper element is a 4500W, 240V screw-in type. The gasket is a thin flat washer that compresses when you torque the element to 30–40 foot-pounds. Any deformity in that gasket or the metal surfaces it touches will leak.
Diagnosing the Problem: Is It the Element or the Tank?
Before you pull out tools, confirm the source of the leak. Water at the upper cover does not always come from the element itself. It could run down from a pipe connection above and pool near the cover.
Dry everything completely, then run a short hot water cycle (let the heater heat for 10 minutes). Watch closely. If water appears directly between the element nut and the tank opening, it is a seal failure. If water drips from the pressure relief valve or inlet/outlet pipes above and just runs down the tank, the element is fine – fix the pipe connection instead.
Once you are sure the element is the source, you need to decide if a new gasket will fix it or if the element itself has failed. Here is how to tell:
| Symptom | Likely Cause | Fix |
|---|---|---|
| Steady drip, no rust around element | Gasket failed (old or compressed unevenly) | Replace gasket (comes with new element in kits) |
| Water is rusty or brown around element | Element is corroding at the flange | Replace element and gasket |
| Leak stops and starts with heating cycles | Loose element nut | Tighten element to 30-40 ft-lbs |
| Water dripping from inside the plastic cover, but element nut is dry | Condensation or leak from thermostat pocket | Drain and reseal thermostat well |
| Visible rust holes or pitting on tank metal around element opening | Tank is corroded – leak will not stop with element replacement | Replace water heater |
If you see rust holes in the tank itself, stop. No gasket or element can seal that. The tank is done, and you need a new water heater. But if the metal around the opening is solid and the only leak is through the gasket area, proceed with the repair.
How to Replace the Upper Heating Element and Stop the Leak
This repair takes about 45 minutes. You need: a socket set (usually 1-1/2 inch for the element nut), a flathead screwdriver, a multimeter (optional but helpful for testing continuity), and a replacement kit. The NISHCON EWH-02 kit covers both upper and lower elements, so you can refresh the whole system now and prevent a future leak on the bottom.
Step 1: Turn off power. Flip the breaker to the water heater. Confirm power is off by trying to turn on a nearby electric oven or by using a non-contact voltage tester near the thermostat wires. Water and electricity do not mix – do not skip this step.
Step 2: Drain the tank partway. Connect a garden hose to the drain valve at the bottom and run it to a floor drain or outside. Open the pressure relief valve to let air in. Drain until the water level drops below the upper element opening. You only need to drain about two to three gallons – enough that the element is above the water line.
Step 3: Remove the access cover, insulation, and old element. Take off the metal cover at the upper access panel. Peel back the foam insulation carefully (save it). Disconnect the two wires from the element terminals. Then unscrew the element with your socket wrench. Turn counter-clockwise. The old gasket will probably stick to the tank – scrape it off completely.
Step 4: Install the new element with a fresh gasket. Place the new gasket onto the new element (copper side facing the tank). Screw the element into the tank by hand until snug, then torque to 30–40 ft-lbs with the socket wrench. Over-tightening can crack the tank flange – go easy.
Step 5: Reconnect wires and test. Attach the two wires to the new element terminals. Tuck all wiring neatly behind the insulation. Replace the foam insulation and the metal cover. Turn the breaker back on. Wait 15 minutes, then check the element cover for leaks. Also check for error codes on the Rheem Performance Plus LCD if your model has one – a red flashing code indicates a dry-fire (if you forgot to fill the tank before turning power on – if that happens, shut off power and fill tank first).
At this point, the leak should be gone. If it still drips, you might have cross-threaded the element – remove it and reinstall carefully. Or the tank opening is damaged, which means replacement is the only option.
Preventing Future Leaks at the Upper Element
Once you fix it, you want it to stay fixed. Most upper element leaks on Rheem Performance Plus heaters happen because of accumulated sediment and thermal cycling. Here is how to extend the life of your repair:
- Flush the tank twice a year. Sediment settles at the bottom, but it also builds up near the upper element if the water is hard. Flushing removes loose scale that can scratch gaskets. Open the drain valve and let six to eight gallons run out until clear.
- Check the anode rod annually. The anode rod sacrifices itself to prevent tank corrosion. If it is consumed, the tank metal starts corroding – including the area around the element flange. Replace a rod that is worn more than 50%.
- Use Teflon paste on the element threads. Many Rheem manuals do not require this, but a thin coat of high-temperature anti-seize compound on the threads helps prevent the element from seizing in place and makes future removal easier. Do not put it on the gasket surface.
- Monitor thermostat settings. Water temperature above 140°F accelerates gasket degradation. Stick to 120–130°F for normal use. The NISHCON kit thermostats are adjustable from 90°F to 150°F, so you can dial in a safe setpoint.
Frequently Asked Questions
Can I just replace the gasket without replacing the element?
Sometimes yes, if the element itself is not corroded and the threads look clean. But in practice, the element and gasket are sold together in most kits, and the cost difference is small. Replacing both at the same time gives you a fresh seal and a clean element surface. The NISHCON kit includes two new elements with gaskets, so you can replace both upper and lower simultaneously.
My Rheem Performance Plus has a digital display. Will replacing the element reset the error code?
Most digital models show error codes like "E1" or "E2" when an element is open (failed) or a thermostat trips. After you replace the element and restore power, the control board usually self-clears the error once it detects continuity at the element. If the code remains, turn the breaker off for 30 seconds and back on. If it still shows, the thermostat or control board may be damaged.
Why is water leaking from the upper element but not the lower one?
The upper element cycles more often because it heats the top third of the tank first. That constant heating and cooling expands and contracts the element nut more frequently, loosening the seal. The lower element only kicks in when a lot of hot water is drawn, so it experiences less thermal cycling. Upper element leaks are three times more common than lower element leaks for that reason.
Do I need to drain the entire tank to replace the upper element?
No. You only need to drain water until the upper element is exposed – usually two to four gallons depending on the tank height. Draining the whole tank wastes water and takes longer. Just drain below the opening and stop. The Rheem Performance Plus has a drain valve at the bottom; spin it open, let water out until the flow stops abruptly (air in the dip tube), then close the valve.
The plastic cover on my upper element is full of water, but I do not see a drip. What is happening?
Condensation inside the cover is common when cold water first enters the tank. The temperature difference between the metal element flange and the surrounding air makes moisture collect on the cover. If you do not see water actually flowing out, and the cover is only damp inside, it is probably condensation. Wipe it dry and check again after 24 hours. If it stays dry, no leak exists.
What You Can Do Right Now
- Stop using the water heater if water is actively leaking near electrical connections – turn off the breaker first.
- Dry and inspect the element area to confirm the leak is not from pipes above.
- If the tank metal looks solid, order a replacement kit like the NISHCON EWH-02 which includes both elements, thermostats, covers, and gaskets.
- Drain only enough water to expose the upper element – you do not need to drain the whole tank.
- Torque the new element to 30–40 ft-lbs – too loose leaks, too tight cracks the tank.
- Flush the tank every six months after the repair to keep sediment off the gasket.
- Replace the anode rod every three to five years to prevent tank corrosion around the element openings.
This repair takes a Saturday morning and costs less than fifty dollars in parts. It beats calling a plumber or prematurely buying a new water heater. If your Rheem Performance Plus upper element has water leaking through it, you now have a clear plan to fix it.
