Over the past few decades, energy is the backbone of technology and economic development. In addition to men, machines and money, ‘energy’ is now the fourth factor of production. The objective of this paper is to design and study an environment friendly vapour absorption refrigeration system of unit capacity using R 717 (NH3) and water as the working fluids. The system is designed and tested for various operating conditions using hot water as heat source. In this paper, performance of the fabricated system is outlined with respect to various operating conditions related to heat source, condenser, absorber and evaporator temperatures. The basic idea of this paper is derived from the solar heating panel installed on the hostel roofs of the institute. The unit has been installed for about an investment of Rs. 1 crore 70 lacs. But the irony is that, this solar heating unit remains idle in the summer months. Also the solar potential is at maximum in the summer.