Are water softeners incompatible with steel hot water tanks?

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I have a thermecon hot water tank that is 9 years old.It has a warning red light on it but otherwise is functioning fine.I have been told that I need to replace the tank with a stainless steel tank as my water softener has most likely caused corrosion in the tank and it may well collapse through my ceiling.
My question is, is a steel hot water tank incompatible with water softeners and can a warning light indicate a more minor problem that can be repaired rather than replace the whole tank. Many Thanks for reading
 
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are you sure the old one is (non-stainless) steel? not copper?

A photo would be nice.

steel will normally rust, even without a water softener, so is not normal in this use. In countries where galvanised tanks are used, they usually have a sacificial zinc anode to slow down corrosion.
 
Your Thermecon tank is actually made by Ariston, it is a stell Glass lined tank, the warning light is telling you that your anti corrosion system is not working, which means the electronic anode inside the anti corrosion box needs replacing, is the tank actually leaking?? you need to get a heating erngineer with G3 Qualification to change the anode, it's not a job for diy, (*i can be a pig, as the old anode usually breaks off in the tank and has to drilled out and the thread restored with a tap ;)
 
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Ariston were replacing there steel cylinders, the ones with the electric protection thing, Classic i think, foc a couple of years back because of the corrosion problems.
 

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