This paper presents the exergy balance equation on a solar collector which acts as the fundamental and principal expression for the solar thermal design. The equation fully explains the exergy loss processes and can be used to derive the approximate optimum operating condition for solar collectors. Furthermore, using the equation, it can be shown that two different collectors, an evacuated tubular collector and a flat-plate collector, have both nearly equal capabilities in exergy gain despite large differences in technological efforts and expenses to produce them. In addition, ways for improvement for a solar collector are also discussed here briefly.

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