The environmental challenges posed by global warming have significantly increased the global pursuit of renewable and clean energy sources. Among these, solar energy stands out due to its abundance, renewability, low environmental impact, and favorable long-term economic viability. However, its intermittent nature and dependence on weather conditions hinder consistent and efficient utilization. To address these limitations, nanoparticle-enhanced phase change materials (NPCMs) have emerged as a promising solution for enhancing thermal energy storage in solar thermal systems. NPCMs incorporate superior-performance nanoparticles within traditional phase change material matrices, resulting in improved thermal conductivity, energy storage density, and phase change efficiency. This review systematically examines the recent advances in NPCMs for solar energy applications, covering their classification, structural characteristics, advantages, and limitations. It also explores in-depth analytical approaches, including mechanism-oriented analysis, simulation-based modelling, and algorithm-driven optimization, that explain the behavior of NPCMs at micro and macro scales. Furthermore, the techno-economic implications of NPCM integration are evaluated, with particular attention to cost-benefit analysis, policy incentives, and market growth potential, which collectively support broader adoption. Overall, the findings highlight NPCMs as a frontier in materials innovation and enabling technology for achieving low-carbon, environmentally responsible energy solutions, contributing significantly to global sustainable development goals.