Summary
The effect of Fe nanofluid on the performance enhancement on solar water heater integrated with thermal energy storage system is investigated experimentally. A 0.5% wt fraction of Fe nanoparticle was synthesized with the mixture of water/propylene‐glycol base fluid. The experimental implementation utilized 40‐nm‐size Fe nanoparticle, 15 ° collector tilt angle, and 1.5 kg/min mass flow rate heat‐transfer fluid circulation. The system efficiency reached 59.5% and 50.5% for with and without nanofluid. The water tank temperature was increased by 13 °C during night mode. The average water tank temperature at night mode was 47.5 °C, while the average ambient temperature was 26 °C. The Fe nanofluid improved the system working duration during night mode by an average of 5 h. The techno‐economic analysis results showed a yearly estimated cost savings of 28.5% using the Fe nanofluids as heat transfer fluid. The embodied energy emission rate, collector size, and weight can be reduced by 9.5% using nanofluids. Copyright © 2016 John Wiley & Sons, Ltd.