The major purpose of the present study is to understand the performance of an integrated photovoltaic and thermal solar system (IPVTS) as compared to a conventional solar water heater and to demonstrate the idea of an IPVTS design. A commercial polycrystalline PV module is used for making a PV/T collector. The PV/T collector is used to build an IPVTS. The test results show that the solar PV/T collector made from a corrugated polycarbonate panel can obtain a good thermal efficiency. The present study introduces the concept of primary-energy saving efficiency for the evaluation of a PV/T system. The primary-energy saving efficiency of the present IPVTS exceeds 0.60. This is higher than for a pure solar hot water heater or a pure PV system. The characteristic daily efficiency eta (s)* reaches 0.38 which is about 76% of the value for a conventional solar hot water heater using glazed collectors (eta (s)* = 0.50). The performance of a PV/T collector can be improved if the heat-collecting plate, the PV cells and the glass cover are directly packed together to form a glazed collector. The manufacturing cost of the PV/T collector and the system cost of the IPVTS can also be reduced. The present study shows that the idea of IPVTS is economically feasible too. (C) 2001 Elsevier Science Ltd. All rights reserved.