Solar water heaters are a well-established renewable energy technology that has been widely adopted around the world. In this project wehave significantly improved the evacuated solar tube collectors (ETC) by utilizing the "dry-drawable" carbon nanotube (CNT) sheets coatings forincreasing solar energy absorption and paraffin phase change materials (PCMs) for increasing the heat accumulation and heat transfer layers inevacuated tube collectors. PCM by itself may not be effective due to the poor heat transfer rate and low thermal diffusivity and thermalconductivity of PCMs in general, particular in powder form. By combining CNT layers (with high thermal diffusivity and conductivity) as anexcellent medium for PCM (in form of microcapsules), we are able to overcome the shortcomings of PCMs and design an innovative and efficientsolar water heater. Such design enables heat storage directly on the collector for a more constant output even on a cloudy day and prolonged outputof heat at night. In addition to being excellent blackbody absorbers, CNT sheets are also a fast source of Joule heating and can be utilized to heatelectrically the solar collectors when sunlight is not sufficient. Such improvement would entirely eliminate the need for a separate gas or electricbooster water heating system, by incorporating low power electric heating directly into the evacuated tube solar collector.