20 PSI is really high for a 1 HP Superpump even with 1 1/2" plumbing. I would have expected much lower pressure. That is 50' of head for just the return side.

Are you sure the gauge is operating properly? Does it go to zero with the pump off?

Also, how long are the runs from pool to the equipment?

Anyway it sounds like the panels will not fully prime unless the bypass is closed so you may need to operate that way. You might try to slowly close the valve until you hear the panels starting to prime and air coming out of the returns. This would be the minimum required flow setting but it probably wouldn't hurt anything to have all the water going through the panels.