This paper investigates the effect of tracking errors in heliostats used in solar tower power plants and proposes an approach based on low-cost distributed electronics capable of limiting their impact. An analysis carried out through a parallel model sets the specifications for design of a closed-loop solar tracker based on a low-cost six-axis digital e-compass. A proof of concept system is devised to test the accuracy of the proposed strategy. This approach allows the solar tracker to perform a run-time detection and correction of heliostat tracking errors, with an accuracy of about 3 mrad for the azimuth angle and less than 2 mrad for the altitude angle, thus leading to a higher concentration ratio than with an open loop solar-tracker. (C) 2017 Elsevier Ltd. All rights reserved.