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Wire a hot water heater with wire that's sized to accommodate the heater's current requirement. For example, a 20-amp hot water heater needs 12-gauge wire, a 25-amp hot water heater requires 10-gauge wire, and a 30- to 40-amp hot water heater requires 8-gauge wire. Some large heaters draw up to 50 amps, requiring 6-gauge wire.
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A water heater of this type is required to be considered a continuous load meaning that the branch circuit needs to be calculated at 125% of the heater's rated ampacity. 4500/240 = 18.75 amps, will work on a 20 amp OCPD but, 18.75*125% = 23.4 amps, requires a 25 or 30 amp circuit
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