The water heater was installed (1967 home) with only two wires (240v) and no ground wire. I presume that it would have been meant to ground through the original pipes, however at a later date pvc pipe was installed on cold and hot side of the heater. Would it be safe to place a grounding strap from the water heater to the metal pipe on the other side of the pvc splice, or is it necessary to run a ground wire all the way back to the breaker box? Which is safer?
Run to breaker panel or drive a 8ft ground rod and connect to it the water line is no longer acceptable as the public utility's are using pvc for gas and water now and this is no longer a practice you could use the ground rod that is already installed on your service and use connector , but something you might do well to check is to make sure in the process of installing the plastic pipes the ground going to the panel was not also disrupted if so you will need to install 2 8ft ground rods at least 6 ft apart and daisey chain together with proper size ground wire . # 4 solid for 200 amp and # 6 solid for 100 amp service , I would make sure the panel ground is solid very important for safety ,, let me know if i can further assist
You have clearly lost your ground due to PVC. One solution would be to run copper ground wire from the hot water tank to the metal splice on each end of the PVC. It is not necessary to go all the way back to the breaker box.
http://waterheatertimer.org/How-to-troubleshoot-electric-water-heater.html
If wire is bad between upper and lower parts of water heater, and water heater has tight-fitting 2" foam insulation, it usually indicates water heater replacement.
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It is 1/2" galvanized buried and running 30' to a water well, not public utility. It just has the pvc splices the last two feet nearest the water heater. Sorry, I did not give enough info. I ran 10 guage solid wire from the water heater to the cold and then over to the hot pipe. Is this not adequate? I would sure like to be safe.
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