A solar power system has a photovoltaic module that supplies electrical current derived from sunlight to a heater system of a hot water tank. The heater system uses the electrical energy from the photovoltaic module, and optionally also from a local power grid, to heat water up to a selected maximum stored hot water temperature. Control circuitry senses when the level of electrical power is below a threshold solar-power level, and in response sets the stored hot water temperature for the heater system to a first lower temperature value. The control circuitry also senses when the level of electrical power is above the threshold solar-power level, an in response sets the stored hot water temperature for the heater system to a second elevated temperature value higher than the lower temperature, making advantageous use of solar power when available. A mixing unit adds cold water to set the dispensed water temperature.