Algae grow suspended in large volumes of water, typically in photobioreactors. The process requires warm climate, necessitating cooling for at least part of the year, even in moderate climate zones. Water temperature can be maintained within the limits for algae survival by air conditioning or, more affordably, using evaporative cooling. The cooling load could diminish the net energy balance and impose a serious constraint on water, generally a limited resource in warm climate zones. Numerous algal strains have been shown in the laboratory to produce more than 50% of their biomass as lipid, with much of it as triacylglycerols, used as high energy density fuels. Compared to biofuel from other sources, algae have the benefits of high per-acre productivity, less competition with food land, and mitigation of GHG release into the atmosphere. The byproducts can also be used to make medical additives. However, production cost of algae is an significant barrier. The main challenge facing algal oil commercialization is high yield and faster payback. The cost of algae fuel is estimated at $2.50/gal for high productivity scenario. This price competes favorably when oil price approaches $100 per barrel. Temperature has a decisive impact on the growth of algae impacting not only the yield but also the very survival of the species, therefore cost. Several studies have been conducted to determine this optimum temperature. One integrated affordable way of algae water temperature control proposed here would be the use of solar thermal energy conversion and waste heat. In this paper, we investigate the feasibility of integrating algae farm in ponds with solar energy recovery as a combined thermal-algae and PV-algae systems.