The use of exergetic analysis can shed light on the plant components which can be improved further. This paper presents an exergy analysis of a small PV-RO desalination plant with a production capacity of 500 L/day. The major exergy destruction was found to occur in the high pressure pump (49.5%) followed by the softener pump (43.4%). The exergy efficiency of the unit referenced to the solar energy irradiance was found to be 0.42% which falls within the range of solar powered desalination processes. Exergy performance of individual plant components and recommendations to further improve the exergy efficiency of the process are presented.