The long-term thermal performance of a direct-expansion, solar-assisted heat pump is determined from the transient simulation of the system. The system employs a bare collector that also acts as the heat pump evaporator. Of particular interest in this study is the configuration in which the compressor and the collector area are properly matched from the long-term thermal performance point of view. This matching is achieved through multistep as well as two-step compressor capacity modulation. In addition to examining the effects of compressor capacity modulation, the effects of various system parameters such as collector area, storage volume, load temperature, wind speed, collector slope, and refrigerant properties are also studied in detail. Monthly averaged thermal performance parameters such as the heat pump system coefficient of performance are determined by executing a computer simulation program that uses the typical meterological year (TMY) solar data for Norfolk, Virginia. Results indicate that the system performance is governed strongly by collector area, compressor RPM, load temperature, and refrigerant properties. The remaining parameters have only weak influence on the long-term system performance of direct expansion solar-assisted heat pump (SAHP) system considered in this study.