The Drainback Reservoir is intended to serve as a storage vessel for the solar heat transfer fluid when the system is not in operation. As the circulation pump energizes, heat transfer fluid is drawn from the reservoir and is circulated across the solar collectors where heat is gained and transferred, via a heat exchanger, to the water storage tank. When the pump de-energizes, gravity enables the heat transfer fluid to 'drain back' into the reservoir. The drainback reservoir may be installed as part of a new solar water heating system or as part of a retrofit to an existing water heater.