A proposed hybrid solar hydrogen system with activated carbon storage for residential power generation is assessed using exergy analysis. Energy and exergy balances are applied to determine exergy flows and efficiencies for individual devices and the overall system. A 'base case' analysis considers the proposed system without modification, while a 'modified case' extends the base case by considering the possibility of multiple product outputs. It is determined that solar photovoltaic-based sub-systems have the lowest exergy efficiencies (14-18%) and offer the most potential for improvement. A comparison of these two scenarios shows that the additional outputs raise the exergy efficiency of the modified case (11%) relative to the base case (4.0%). An investigation of the energy and exergy efficiencies of separate devices illustrates how energy analyses can be misleading. The hybrid system is expected to have several environmental benefits, which may offset to some degree economic barriers to implementation. Copyright (C) 2010, Hydrogen Energy Publications, LLC. Published by Elsevier Ltd. All rights reserved.