Process heat produced by solar collectors can contribute significantly in the conservation of conventional energy resources, reducing CO2 emission, and delaying global warming. One of the major problems associated with solar process heat application is fluctuation in system temperature during unsteady state radiation conditions which may cause significant thermal and operation problems. In this paper a transient simulation model is developed for analysing the performance of industrial water heating systems using parabolic trough solar collectors. The results showed that to prevent dramatic change and instability in process heat during transient radiation periods thermal storage tank size should not be lower than 14.5 l m−2 of collector area. Small periods of radiation instability lower than 30 min do not have significant effect on system operation. During these periods when water flow rate of collector loop is doubled the time required to restore system normal operating condition increased by a ratio of 1.5. Copyright © 2005 John Wiley & Sons, Ltd.