This paper is aimed at analyzing the behavior of a packed bed latent heat thermal energy storage system. The packed bed is composed of spherical capsules filled with paraffin wax as PCM usable with a solar water heating system. The model developed in this study uses the fundamental equations similar to those of Schumann, except that the phase change phenomena of PCM inside the capsules are analyzed by using enthalpy method. The equations are numerically solved, and the results obtained are used for the thermal performance analysis of both charging and discharging processes. The effects of the inlet heat transfer fluid temperature (Stefan number), mass flow rate and phase change temperature range on the thermal performance of the capsules of various radii have been investigated. The results indicate that for the proper modeling of performance of the system the phase change temperature range of the PCM must be accurately known, and should be taken into account. (C) 2008 Elsevier Ltd. All rights reserved.