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My disclaimer: This is how i would troubleshoot it as someone who worked in the electrical trade. Highly recommended you hire an electrician if you do not feel comfortable. In fact, it may be legally required to have an electrician come in in some areas.
I would look at the amp rating of the water heater, and make sure the wire and breaker are adequately sized. I would then check all the connections and make sure they are nice and tight and there is no corrosion. Make sure the wire is in good condition and free of damage, or pinch points (hard to do if the wire is buried in a wall). I'd check the connections at the heater, and any boxes along the way and then at the panel. I'd make sure the terminal connection to the breaker is nice and tight and that there are no obvious defects/damage to the breaker.
I'd put a meter on the wire at the breaker and check to see how many amps the heater draws when heating. I'd probably run the hot water for a bit to try and deplete the tank, and then monitor the current draw as the tank heats up to see if the current increases over time. I'd check this against the wire size and breaker rating and make sure it's still within the acceptable range.
Finally, if everything checks out, or as a good measure i'd just replace the breaker.
There would probably be a few additional checks i'd make based on seeing the actual hookup of the system. So this would be a very general troubleshooting scenario.
Except one. Don’t know the brand. If it’s a F-P panel, it’s worth replacing.
I was told by an inspector that Challenger breaker boxes should be replaced. I'm not familiar with them though.
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