New designs of dual concentration photovoltaic-thermal (CPV/T) systems can provide both electrical and thermal energy, while reducing solar cell material usage via optical techniques. The overall system efficiency can be improved by using advanced dual-purpose liquids with enhanced heat transfer characteristics, such as nanofluids. In this paper the use of nanofluids, i.e., dilute nanoparticle suspensions in liquids, are considered for improved efficiency of a CPV/T system for the first time. Specifically, a 2-D model coupling thermal analysis and computational fluid dynamics simulations has been developed to calculate efficiencies of individual subsystems as well as the overall system, A new thermal conductivity model for nanofluids, which was validated with experimental data sets, was employed. The electrical and thermal performances of the system were evaluated for different climatic conditions. The results show that using nanofluids improves the electrical and total efficiencies of the system, especially when using silicon solar cells. For example, if the nanofluid outlet temperature of the solar cell is set to 62 degrees C via a controlled flow rate, the system overall efficiency could reach 70% with electrical and thermal contributions amounting to 11% and 59%, respectively. In summary, a nanofluid-based system is preferable to water-based systems in the long run. (C) 2014 Elsevier Ltd. All rights reserved.