A solar thermal system features solar panels that heat water by using the sun’s energy. Solar radiation heats a liquid circulating within the solar panels, and this liquid, in turn, transfers the heat absorbed to a tank full of water.

Using the hot water stored in this water tank instead of water heated by a gas or electric boiler or water heater results in significant savings in the consumption of gas or electricity.

Solar thermal energy is generally used to produce hot water for home use, to heat buildings, or to heat water for industrial or agricultural uses.

Solar thermal panels can also be used for cooling systems in the summer by using solar cooling systems.