Solar thermal technology refers to the capture and utilisation of solar energy for use in heat or electricity production. Enormous potential exists to use the energy of the sun directly for a range of applications such as water heating, food drying and space heating, which have already seen widespread adoption. More sophisticated technologies are being developed for electricity generation using solar thermal collectors and steam turbines.

Australia has been a world leader in the development of solar hot water systems and is a significant exporter of this technology. New technologies are being developed by manufacturers of solar hot water systems to utilise alternative low-cost materials (such as plastic) and systems are being developed that work effectively in cold climate export markets.