Solar panels convert incident sunlight into heat extremely efficiently. This heat is generated through the absorption of the sun’s rays by a dark colour-coated absorber which is connected to a piping system. The heat transfer fluid in the piping system absorbs and is pumped to the hot water tank, where the heat is transferred to the water by a heat exchanger. A solar thermal system not only converts direct sunlight but also indirect sunlight into heat, so it works even when the sky is overcast. During winter months, the solar thermal system will pre-heat the water which will then be brought up to temperature by the conventional hot-water system for a fraction of the cost. A properly set up solar hot water system can provide 70% of your hot water needs.