In the present study, the passive technique of heat transfer in which single pass and double passes are included in a simple U‐tube heat exchanger is analyzed. The computational fluid dynamics (CFD)‐based parametric analysis is carried out to optimize the parameters affecting the temperature drop and heat transfer achieved from the U‐tube heat exchanger. ANSYS Fluentv20 is used for the CFD analysis, and the RNG k‐ɛ model and energy equation were considered to define the turbulence and heat transfer phenomena. The Taguchi method is used to formulate the experimental work and analyze the working parameters of the U‐tube heat exchanger, such as hot and cold mass flow rate and hoRenew Energyt inlet temperature and cold inlet temperature. For the U‐tube heat exchanger, four operating parameters are considered at four different levels in the Taguchi method. The best combination of parameters for achieving a maximum temperature drop is A4B1C2D3, and it is A3B4C1D2 in case of heat transfer. A U‐tube single‐pass heat exchanger is more effective as compared with other U‐tube heat exchangers (zero‐ and double‐pass). Experimental results are provided to validate the suitability of the purpose of the approach.