In this paper a novel high temperature microencapsulated phase change material (MEPCM) based on paraffin as the core material and MF resin as the shell material has been developed with the in-situ polymerization method for solar hot water storage application. The results showed that the type of emulsifier could influence core material content, the encapsulation efficiency as well as the latent heat capacity. Based on the results and analysis the study has shown that energy storage density could be increased by as much as 59% if 60wt% of MEPCM 1 was to be used in the proposed compacted MEPCM-water bed system. In this paper a novel high temperature microencapsulated phase change material (MEPCM) based on paraffin as the core material and MF resin as the shell material has been developed with the in-situ polymerization method for solar hot water storage application. The results showed that the type of emulsifier could influence core material content, the encapsulation efficiency as well as the latent heat capacity. Based on the results and analysis the study has shown that energy storage density could be increased by as much as 59% if 60wt% of MEPCM 1 was to be used in the proposed compacted MEPCM-water bed system. Nomenclature = latent heat of PCM = enthalpy , , = the weight percentage of water, core material and shell material , , = the specific heat of water, core material and shell material , , = the conductivity of water, paraffin and shell material , = the volume percentage of shell material and core material