Dear Mavadi,
SAM's Solar Water Heating model uses the incidence angle modifier equations from Duffie and Beckman's
Solar Engineering of Thermal Processes for flat collectors, which use a single incidence angle modifier coefficient. These equations are described in Section 6.17 of the Fourth Edition of the book. You can see how these equations are implemented in SAM in the following source code around Line 435:
github.com/NREL/ssc/blob/develop/ssc/cmod_swh.cpp
Best regards,
Paul.