Because textile industries are intensely water-consuming and generate a huge quantity of wastewater, the present study examines the scope of using solar thermal technology to treat wastewater from textile industries. A hybrid technology, comprising a compound parabolic concentrator-based solar thermal system in conjunction with a Membrane Distillation (MD) system, is experimented with for wastewater treatment in textile industries. The MD system requires a water temperature of around 90 °C for efficient functioning. The advanced MD technology using waste heat combined with solar heat to meet the system’s thermal load is technologically evaluated for an experimental textile industry in India. Moreover, the present study critically analyses the techno economics of the proposed hybrid technology. A detailed financial analysis has revealed that, besides technological superiority, the recommended technology is also financially rewarding for wastewater treatment in the textile industry. To cope with the delayed payback period, financial incentives are recommended so that the system becomes a lucrative technological option.