A concentrated photovoltaic system is evaluated as a thermal energy source employing phase change material to meet the domestic water heating demand. A paraffin wax-based phase change material is selected with a 58 °C melting point to store enough thermal energy to match the hot water demand in the buildings. The energy performance of the concentrated photovoltaics containing phase change materials is compared to that of the reference to determine the increased energy outputs due to the heat removal by the material. The concentrated photovoltaics-phase change material achieved 30% higher energy output compared to the reference concentrated photovoltaic, thus providing a strong justification for the improved thermal management design. An enthalpy-based thermal model is developed to compare the experimental results with model predictions, confirming a reasonable agreement between the results. The model is used determine the optimum melting point and container size for different phase change materials under different radiation concentrations for the hot climate of the United Arab Emirates.