Solar thermal energy usage in the Baltic countries is currently low, so there is a need to find technically and economically feasible solutions to increase the appeal of this technology. Integration of solar energy into existing district heating systems is a way to increase the share of renewable energy sources while utilizing the existing infrastructure, thereby reducing capital investments, as well as mitigating the risk of solar collector overheating and eliminating the need for local storage tanks in buildings. This study presents a parametric study for evaluating the effectiveness of using a district heating system to store heat produced by decentralized solar thermal collectors and comparing the district solution to the traditional local solution. The TRNSYS 18 model was developed for this purpose. The model investigates the impact of different hot tap water demand profiles as well as pipeline diameters and lengths on system energy efficiency, showing a statistically significant difference (p<0.05) between installing solar collectors on residential and restaurant or office roofs, and no significant difference (p=0.24) between restaurant and office. The model shows that solar energy can be shared within a 500 m distance between neighborhoods and that a larger main pipeline diameter can increase overall system efficiency.