This paper presents a new method for the optimisation of the mirror element spacing arrangement and operating temperature of linear Fresnel reflectors (LFR). The specific objective is to maximise available power output (i.e. exergy) and operational hours whilst minimising cost. The method is described in detail and compared to an existing design method prominent in the literature. Results are given in terms of the exergy per total mirror area (W/m(2)) and cost per exergy (US $/W). The new method is applied principally to the optimisation of an LFR in Gujarat, India, for which cost data have been gathered. It is recommended to use a spacing arrangement such that the onset of shadowing among mirror elements occurs at a transversal angle of 45 degrees. This results in a cost per exergy of 2.3 $/W. Compared to the existing design approach, the exergy averaged over the year is increased by 9% to 50 W/m(2) and an additional 122 h of operation per year are predicted. The ideal operating temperature at the surface of the absorber tubes is found to be 300 degrees C. It is concluded that the new method is an improvement over existing techniques and a significant tool for any future design work on LFR systems. (C) 2011 Elsevier Ltd. All rights reserved.