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In this paper, a review of exergy and improvement potential (IP) of solar thermal systems is presented. The review includes exergy analysis of photovoltaic thermal (PVT) systems, solar drying systems and solar collectors. Solar collectors, which are the most essential components of solar thermal systems, receive solar energy and convert it into thermal energy. Since the solar/PVT collector system is an essential component when the design of sustainability is considered, exergy analysis, which provides a more representative performance rating. In addition, a theoretical and experimental performance of hybrid photovoltaic thermal/thermoelectric (PVT/TE) air collector is investigated. A steady-state thermal analysis of a hybrid PVT/TE air collector is developed to predict air outlet and photovoltaic (PV) temperatures. The predicted results are in close agreement with the experimental study. The percentage error of air outlet and PV temperatures between theoretical and experimental value is 1.1% and 2.6% respectively. On the other hand, the simulated model is then used to study the performances of a hybrid PVT/TE air collector using exergy analysis for the mass flow rate ranging between 0.001 kg/s to 0.15 kg/s and a solar radiation of 600 W/m2. The effect of mass flow rate on exergy efficiency and an advance prospective are observed. The optimum exergy efficiency of PVT/TE obtained is relatively 0.38. In addition, IP is proposed in this study. • The theoretical approach on the hybrid photovoltaic thermal/thermoelectric (PVT/TE) air collector is developed. • The predicted results are in close agreement with the experimental study. • The exergy efficiency of hybrid PVT/TE air collector obtained is superior compared PVT air collectors. • The exergy efficiency of hybrid PVT/TE air collector obtained is 38%. • The exergy efficiency of PVT air collector of review study obtained is 4–18%. [ABSTRACT FROM AUTHOR]