In this paper, a novel system to enhance the performance of a solar-driven finite speed alpha-type Stirling engine is proposed and evaluated. Part of the concentrated solar energy is used to drive an ejector refrigeration system. The cooling produced in the ejector cooling cycle is used to cool the Stirling engine to enhance its efficiency. Model equations to describe the systems are proposed and solved numerically. The results indicate that the new system produces averagely 3.3 times electrical power more than the conventional one. Moreover, the proposed system improves the Stirling engine efficiency by up to 46% in comparison with 19.15% for the conventional Stirling engine under solar radiation intensity of (1 kW/m(2)). Also, the results showed that the solar radiation intensity and wind speed are the most influential parameters that affect the proposed system efficiency. The new system is recommended to use in desert climates where high average daily solar radiation intensity, low wind speeds, and water shortage exist. Economic analysis is carried out to determine the feasibility of the proposed system under different economic parameters. It is found that, for instance, the simple payback period is 4.64 years for the new system when the selling price of electricity is 0.35 $/kWh.