New energy saver water heaters (WH) now come with vertical (top-mounted) heat trap nipples to reduce heat loss by up to 60% from convection.
On vertical models, the cold water inlet (blue cap) features a dip tube containing a thermoplastic or Teflon ball which is lighter than water and floats to its seat when the incoming downward water flow stops. This prevents the hot water from rising into the cold water supply line. The hot water outlet (red cap) contains a polypropylene ball that is heavier than water and sinks to seat when the outgoing upward water flow stops.
In order for a thermo-cycle system to function properly, the vertical heat trap for the hot water must be replaced with a regular nipple to allow the free flow of hot water. The heat trap for the cold can remain installed.
Without a check valve on the return line, when the hot water is turned on water from both directions, the hot line and the return line, will rush towards the faucet.
A check valve is required to prevent the colder water at the bottom of the WH from being sucked out and back up through the return line when the hot is turned on resulting in cooler water arriving at the fixture, especially if the return line is a smaller diameter allowing the cooler water to arrive sooner and continuously mix with the water from the hot line resulting in luke warm water. As the hot water is replaced with cold supply piped to the bottom of the WH the return line becomes even colder.
There are several types of check valves: spring, swing, and ball. For thermo-cycling, the spring is too powerful. The swing must be mounted horizontally and maybe even a little tilted and maybe with a hole.
I am considering installing a ball-type check valve for cold water (ball floats) in the vertical input line to the bottom of the water heater to prevent pulling the colder water into the hot water return line and back to the last fixture in the loop. The vertical cold water ball valve will float at the top preventing any water from traveling up the return line from the bottom of the tank. And the floating ball should not interfere with the cooler water 'falling' down into the bottom of the WH.
I think a picture would help. Does this sound correct? If so, I can draw up a sketch to visualize the thermo-cycle system.