A microcontroller based, thermal energy meter cum controller (TEMC) suitable for solar thermal systems has been developed. It monitors solar radiation, ambient temperature, fluid flow rate, and temperature of fluid at various locations of the system and computes the energy transfer rate. It also controls the operation of the fluid-circulating pump depending on the temperature difference across the solar collector field. The accuracy of energy measurement is +/-1.5%. The instrument has been tested in a solar water heating system. Its operation became automatic with savings in electrical energy consumption of pump by 30% on cloudy days.