We introduce and test a new and highly efficient method for treating the thermal and radiative effects influencing the energy equation in SPH simulations of star formation. The method uses the density, temperature and gravitational potential of each
particle to estimate a mean optical depth, which then regulates the particles heating and cooling. The method captures -- at minimal computational cost -- the effects of (i) the rotational and vibrational degrees of freedom of H2, H2 dissociation, H0 ionisation, (ii) opacity changes due to ice mantle melting, sublimation of dust, molecular lines, H-, bound-free and free-free processes and electron scattering; (iv) external irradiation; and (v) thermal inertia. The new algorithm reproduces the results of previous authors and/or known analytic solutions. The computational cost is comparable to a standard SPH simulation with a simple barotropic equation of state. The method is easy to implement, can be applied to both particle- and grid-based codes, and handles optical depths 0<tau<10^{11}.
