In this paper, the energy and exergy analysis of the solar annular thermoelectric generator (SATEG) considering Thomson effect in conjunction with Peltier, Joule and Fourier heat conduction have been introduced. Unlike the flat plate thermoelectric generator, the cross section area of an annular thermoelectric generator increase along the radial direction. Therefore, the annular thermoelectric generator possess higher total heat transfer area when compared with flat plate thermoelectric generator. The solar radiation absorbed by the solar heat pipe is given as the energy input to the SATEG. This system has the advantage of providing electrical power output and hot water output. The results of this study show that the power output and overall exergy efficiency of the SATEG are 1.92 W and 5.02% respectively and are 0.52% and 0.40% higher than that of solar flat plate thermoelectric generator (SFTEG). SATEG system has advantage of better thermal insulation, improved heat transfer characteristics, easy installation and maintenance when compared with the solar flat plate thermoelectric generator because of its cylindrical structure. This study will be helpful in designing of actual solar annular thermoelectric generation systems. (C) 2016 Elsevier Ltd. All rights reserved.