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The performance of a flat-plate solar collector is usually assessed by its efficiency. This efficiency is normally defined on a steady-state basis, which makes it difficult to correctly track the instantaneous performance of the collector in various case-studies. Accordingly, this paper proposes an improved definition of instantaneous efficiency of a flat-plate solar collector used as a part of a solar water heating system. Using a predeveloped model by the authors for such a system, the proposed efficiency-definition is examined and compared with the conventional one for specific case studies. The results show that the improved definition of efficiency records reasonable values, i.e., no over-range values are observed contrast to the case of conventional efficiency-definition. Furthermore, this suggested efficiency approximately coincides with the conventional one at a wide range of time, as long as the system is operating in the so-called trans-steady-state phase or when the system is off-operational provided that the instantaneous rate of heat stored in the heat transfer fluid (HTF) is less than or equal to zero. As a result, the improved efficiency-definition yields more realistic results in reflecting the performance of a flat-plate collector in an active solar water heating system and is recommended to be used. [ABSTRACT FROM AUTHOR]