How Solar Thermal Works
Solar Thermal systems use heat energy from the sun to increase the temperature of the liquid within the system. This liquid is then pumped through a coil heat exchanger in a water tank, transferring the collected heat to the water in the tank. This hot water contributes to your household demand. 
1. A solar collector (Flat plate panels or evacuated tube panels) is installed on the roof of your house
2. The solar collector contains a non-toxic freeze proof solar fluid (water & anti-freeze), which is heated by the sun and a controller detects when the solar fluid is hotter than the water in the hot water tank.
3. In your house, a pump called the Solar Station pumps the solar fluid from the solar collector to the hot water tank.
4. The solar fluid flows through a pipe coiling inside the hot water tank, which heats up the water in the tank.
5. Hot water is then available for you to use in the house.
6. The solar fluid is then pumped back up to the collector, where it is once again heated by the sun.
The components that make up a solar thermal system: