An air source heat pump water heater with phase change material (PCM) for thermal storage was designed to take advantage of off-peak electrical energy. The heat transfer model of PCM was based upon a pure conduction formulation. Quasi-steady state method was used to calculate the temperature distribution and phase front location of PCM during thermal storage process. Temperature and thermal resistance iteration approach has been developed for the analysis of temperature variation of heat transfer fluid (HTF) and phase front location of PCM during thermal release process. To test the physical validity of the calculational results, experimental studies about storing heat and releasing heat of PCM were carried. Comparison between the calculational results and the experimental data shows good agreement. Graphical results including system pressure and input power of heat pump, time-wise variation of stored and released thermal energy of PCM were presented and discussed. (c) 2007 Elsevier B.V. All rights reserved.