How does the circulating water get back to the tankless system when the faucet is closed? I have a regular system and when the pump is running I have a valve that opens between the hot water line and the cold water line and the cold water line is used to returns the hot water to my hot water heater. Sounds like your system is not returning the water.
AI suggest the following. Choose the right recirculation pump for your tankless water heater model.
Install a check valve and sensor valve in the recirculation line.
Install an aquastat on the tankless unit and connect it to the recirculation pump.
Set the temperature on the aquastat to the desired level.
Turn on the pump and test the system to ensure it’s working.
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