When I had my heater I did do the plumbing to be able to bypass the heater only to cut the flow resistance when the heater wasn't being used. As for using CPVC, I don't think that is necessary. In any heater operation situation I can't see any way the water temperature in the pipes can be anywhere near the softening point of plain PVC. I admit I can't remember what the recommended temperature limit for PVC is but it is way above what any water in the system should be. Please correct me if I'm wrong or missing something.
Al
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