ABSTRACT Energy storage materials have the potential to improve the performance of thermal systems due to their excellent thermo-physical properties. Different energy storage materials have been tested for different thermal systems and found adequate to improve their thermal performance. Present work focuses, (i) on the development of two different composite energy storage materials (CESM) by mixing graphite black powder (obtained from lithium batteries cells) in paraffin wax and coconut oil, and (ii) testing of these materials for solar space heating inside the two similar air heating systems namely, Model-2 and Model-3. Air heating trials have been conducted on four different configurations by placing CESM-filled containers on the absorber of the tested heaters. Results of natural and forced convective operations have been compared with a similar conventional air heater (Model-1) and also to some other relevant works on air heating systems. Results revealed that Model-3 is the best model. For this system, improved heat transfer was observed at 356.20 W/m2.K, thermal efficiency was observed at about 78.8%, overall heat loss was computed at 5.91 W/m2.K and maximum exhaust air temperature was observed at about 322.05 K. The cost of Model-3 was about $51.14 (₹ 4110 in Indian currency). Model-3 can be easily developed and used for air heating and drying operations under mild cold climate conditions.