It works pretty well for my climate. I wonder how it compares to PV panels driving an electric heater though. Neither is going to work very well during the winter but the hydronic based system probably needs to get above some base level of solar input to meaningfully heat the water. Whereas PV will always produce some electricity in the winter which can always be converted to heat.
https://en.wikipedia.org/wiki/Thermostatic_mixing_valve
I see these a lot in commercial domestic hot water systems, a lot of them use steam or boiler loop water to heat the domestic hot water.
We don't have solar but we do have a solar energy plan from our power company, so power during solar hours is charged at 0.5x rate in trade for the solar during the duck curve hours being 2x. So we have the hot water heater set to only heat during the solar hours and A/C set to shut off during duck curve hours.
This has resulted in our electricity costs for our house being lower than the combined electricity+gas costs for the apartment we lived in before (which was much smaller).