“Recirculating water defeats the purpose of having tankless” is not true. Recirculating water is beneficial to both a hot water tank or going tankless. A tankless gives you instant hot water at the tankless unit in the garage, it takes minutes to get the cold water out of the lines to your shower or tub. Tankless heaters you are not heating the tank 24/7 when not using/needing the water plus you still have to wait this hot water to get to your shower or tub.
We’ve had recirculating water in our last couple of houses and the most critical part of this system was setting the recirculating pump temperature correctly: too high an the pump will run constantly and keep asking the water heater/tankless heater to keep heating the water, too low of a setting, you will have colder water in the lines. I always had this pump setting a couple degrees cooler than the tank/tankless heater.
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