Inline water heater - melts sand?

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So I have a Quiteside On demand inline water heater model ODW-199A. It is one of the big ones that will run like 3 showers a sink and a washer machine at the same time. I am on a well and have very hard water (currently installing water softner) but my issue is what is coming out of the water heater. At first I thought it was gypsum coming up from the well. I have been getting these flakes that clog up my shower heads and faucets and is actually clogging up the internal parts along with the screen filters with in the faucets and heads them self. I have tried taking apart the faucets and showers to clean them out but I am pretty sure they are ruined with debris. Even the washer machine was not putting out any water on hot. So I took off the hoses off the back and noticed something. In the cold water line there was nothing but sand. But in the hot water line there was no sand but flakes similar to the color of the sand. And I realized as I flushed the inline heater that some of the flakes had a slight curve to them as if the sand blowing through the water heater would touch the sides of the heater and then melt. Some sticking to the pipes in the heater to flake off at a later time.
Is this possible? Sand melting from the inline water heater?
I am taking a glass blowing class in a month or so and will ask the sand melting experts and see then as well. And maybe even bring some of my sand in to them along with this "silica glass"
I just installed a fiber/carbon filter on the intake to the water heater. I think my issue is resolving, the out put of the flakes has decreased. i think what I am getting is residual from the pipes in the house and in the heater.
Here is a photo of the sand (originally there were NO flakes in it till my kids played with it and mixed some of them.
Sand1.jpg

Here is a link to a larger picture of the sand
and then in this photo is the flakes. On top of the quarter is a larger flake and you can make out the slight curve up. All the pieces are flakes, many are broken and small
flakes1.jpg

Link to larger image
Let me know if any one has seen this. I am hoping it is just the sand melting and the filter I just installed will fix the issue, and the water softner will also help with the process.
 
That stuff looks an awful lot like the sand you get from an aquifer. Which means your well is pumping sand. This is not good and if you install a softener, the sand will fill it up eventually.

Wells are not supposed to pump sand, but some do. It can be because the driller didn't put in a fine enough screen or it could be a hole in the casing somewhere.

NO matter where it's coming from, if it's sand, it's going to cause a lot of problems.
 
I have this, too! I've had both the dishwasher and washing machine lines completely plugged & have to clean faucets and shower heads monthly. Installed a whole-house paper particle filter and that didn't help. Also have demand water heater. Have Pex lines.
 
I called Takagi, manufacturer of the water heater. They said the particles are scale breaking off inside the heat exchanger. The heat exchanger needs to be descaled. To prevent further issues I should install either a siliphos filter on the cold water line leading to the heater, or add a water softener.
 
If you really want results, get the softener. A softener will not remove or prevent sulphur buildup. So if the scale is black, you will still have it.
 
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