This study presents a methodology to develop a solar reactor based on the thermodynamics and kinetics of methane decomposition to produce hydrogen with no emissions. The kinetic parameters were obtained in the literature for two cases; methane laden with carbon particles and methane without carbon particles. Results show that there is significant difference in experimentally obtained and theoretically predicted methane conversion. The paper also presents a parametric study on the effects of temperature, pressure and the influence of inert gas composition, which is fed along with methane, on the thermodynamics of methane decomposition. Results show that there is significant effect of the inert gas presence in the feeding gas mixture on the equilibrium of methane conversion and product gas composition. Results also show that higher conversions are obtained when the carbon particles laden with methane. The step-by-step reactor design methodology for homogenous methane decomposition and the parametric study results presented in this paper can provide a very useful tool in guiding a solar reactor design and optimization of process operating conditions. (C) 2010 Professor T. Nejat Veziroglu. Published by Elsevier Ltd. All rights reserved.