You remove the drain plug or put in a second hole at the same height above the bottom of the tank. You unscrew the black flange from the right-hand side (in the above views) of the heater, put the heater inside the tank and pull the electric cord outside the tank through the hole. You rescrew the flange (with a rubber gasket like the drain plug assembly uses) back on to the outside to tighten both sides (red and black) together on the inside and outside, respectively, of the tank. The heater coil is inside, under the water, fixed in place, unable to touch the plastic sides of the tank. The electric cord is outside.
If this isn't clear enough Bruce, I can take pix while mounting the spare heater in the spare tank. Let me know.