Thermal model reduction algorithms and techniques are introduced to condense a huge satellite panel thermal model into the simplified model on the purpose of calculating the thermal responses of a satellite on orbit. Guyan condensation algorithm with the substitution matrix manipulation is developed and the mathematical procedure is depicted step by step. A block-form LU decomposition method is also invited to compare the developed algorithm. The constructed reduced thermal model induced from the detailed model based on a real satellite panel is satisfying the correlation criterion of ${pm}2^{circ}C$ for the validity accuracy. Guyan condensation algorithm is superior to the block-form LU decomposition method on computation time.