That is the way I have my electric water heater hooked up to the Nyletherm because a coaxial pipe is not included. I had a heat trap piping set up previously, so I tapped into the cold water 3/4" male fitting with a brass T and isolation ball valve. That goes to the inlet of the Nyletherm. The outlet of the Nyletherm goes to the heater drain, tapped in a similar manner as the cold.
I wanted to tap into the cold water line before the heat trap. I figured the hot circulating water would migrate less that way. The Grundfos pump in the Nyletherm circulates the water from the lower part of the cold water dip tube, through the heat pump, and then back into the bottom of the tank, and then the cycle repeats until the lower thermostat is satisfied. Apparently, while connecting the Nyletherm's output to the hot water outlet of the water heater would heat the water in the tank, if water is used while the pump is running, less than hot water is the result.
It works for me, so far.
I wanted to tap into the cold water line before the heat trap. I figured the hot circulating water would migrate less that way. The Grundfos pump in the Nyletherm circulates the water from the lower part of the cold water dip tube, through the heat pump, and then back into the bottom of the tank, and then the cycle repeats until the lower thermostat is satisfied. Apparently, while connecting the Nyletherm's output to the hot water outlet of the water heater would heat the water in the tank, if water is used while the pump is running, less than hot water is the result.
It works for me, so far.