The use of latent heat storage system using phase change materials(PCMs) is an effective way of storing thermal energy and has the advantages of high-energy storage density and the isothermal nature of the process. Thermal energy storage is essential for both domestic water heating and space heating applications and for industrial applications. Energy can be stored by the heating, melting, or vaporization of material and the energy is made available as heat, when reversed. The main objective of the project is to analyse the temperature distribution pattern of the phase change material during the process of charging and discharging. Also the study is carried out for different mass flow rates of the heat transfer fluid. Paraffin wax has been used as the phase change material. This is because paraffin maintains its properties even after thousands of charging and discharging cycles. This type of thermal energy storage system has a good potential of acting as a thermal storage device and can be used in solar water heating applications.