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Solar hot water systems use the sunlight to heat water, which can be used for your domestic hot water needs or for space heating.  For many homes or businesses, heating hot water is a  large percentage of their energy use.  Solar hot water systems utilize solar collectors that capture the sun energy and transfer that heat to the heat transfer fluid, this fluid is then pumped to a water storage tank where the heat/energy can be stored for use as needed.  Solar hot water systems are a more efficient way to capture the sun energy than solar Photovoltaic (PV) Systems.