The thermal performance of thermosyphon flat-plate solar water heater with a mantle heat exchanger was investigated to show its applicability in China. The effect on the performance of the collector of using a heat exchanger between the collector and the tank was analyzed. A "heat exchanger penalty factor" for the system was determined and energy balance equation in the system was presented. Outdoor tests of thermal performance of the thermosyphon flat-plate solar water heater with a mantle heat exchanger were taken in Kunming, China. Experimental results show that mean daily efficiency of the thermosyphon flat plate solar water heater with a mantle heat exchanger with 10 mm gap can reach up to 50%, which is lower than that of a thermosyphon flat-plate solar water heater without heat exchanger, but higher than that of a all-glass evacuated tubular solar water heater. (C) 2010 Elsevier Ltd. All rights reserved.