Energy and exergy balances were done on a novel solar hi-ejector refrigeration system with R123. whose circulation pump is replaced by an injector. the analysis result of the novel system was compared with that of the original one. The effect of operation condition on system energy efficiency, exergy efficiency and exergy loss was analyzed, and the dynamic performance or a designed solar hi-ejector refrigeration system was also studied. The comparative results indicate that under the same operating condition, the novel system and the original system have equal energy efficiency. exergy efficiency and exergy loss, and the only difference between them is the exergy losses of the generators and the added injector. The other conclusions mainly include: the solar collector has the largest exergy loss rate of over 90% and for the hi-ejector refrigeration subcycle. the ejector has the largest exergy loss rate of about 5%; the total exergy loss changes inversely proportional to the evaporation temperature and positively proportional to the condensation temperature; when the other parameters are fixed, there exists an optimum generation temperature, at which the overall energy and exergy efficiencies are both the maximum and the total exergy loss is the minimum. The study points out the direction for optimizing the novel solar hi-ejector refrigeration system. Copyright (C) 2009 John Wiley & Sons. Ltd.