Lauric acid (m.p.: 42.6°C) and myristic acid (m.p.: 52.2°C) are phase change materials (PCM) having quite high melting points which can limit their use in low-temperature solar applications such as solar space heating and greenhouse heating. However, their melting temperatures can be tailored to appropriate value by preparing a eutectic mixture of lauric acid (LA) and myristic acid (MA). In the present study, the thermal analysis based on differential scanning calorimetry (DSC) technique shows that the mixture of 66.0 wt% LA forms a eutectic mixture having melting temperature of 34.2°C and the latent heat of fusion of 166.8 J g⁻¹. This study also considers the experimental establishment of thermal characteristics of the eutectic PCM in a vertical concentric pipe-in-pipe heat storage system. Thermal performance of the PCM was evaluated with respect to the effect of inlet temperature and mass flow rate of the heat transfer fluid on those characteristics during the heat charging and discharging processes. The DSC thermal analysis and the experimental results indicate that the LA–MA eutectic PCM can be potential material for low-temperature solar energy storage applications in terms of its thermo-physical and thermal characteristics. Copyright © 2005 John Wiley & Sons, Ltd.