As with increasing demand of energy it is very necessary to switch into alternate resources of energy as consumption of fossil fuels is resulting in emissions of greenhouse gases which is very harmful for the environment and the energy resources also increasing the prices as the demands are increasing. Almost 30%-40% electricity was consumed in heating the water for domestic purposes hence it is very important and necessary to search for some alternate source for heating the water apart from burning the fossil fuel no other option then solar is best for heating the water. This paper discussed each component of Solar Assisted Heat Pump Water Heating System. In this article flat plate collector, glazing, tube arrangement, compressor with variable speed, condenser coil arrangement, types of refrigerant and a deep about heat pump and direct expansion solar assisted heat pump system is reviewed.