Solar photovoltaic/thermal technology has been widely utilized in building service area as it generates thermal and electrical energy simultaneously. In order to improve the photovoltaic/thermal system performance, nanofluids are employed as the thermal fluid owing to its high thermal conductivity. This paper summarizes the state-of-the-art of the photovoltaic/thermal systems with different loop-pipe configurations (including heat pipe, vacuum tube, roll-bond, heat exchanger, micro-channel, U-tube, triangular tube and heat mat) and nanoparticles (including Copper-oxide, Aluminium-oxide, Silicon carbide, Tribute, Magnesium-oxide, Cerium-oxide, Tungsten-oxide, Titanium-oxide, Zirconia-oxide, Graphene and Carbon). The influences of the critical parameters like nanoparticle optical and thermal properties, volume fraction, mass flux and mass flow rates, on the photovoltaic/thermal system performance are for the optimum energy efficiency. Furthermore, the structure and manufacturing of solar cells, micro-thermometry analysis of solar cells and recycling process of photovoltaic panels are explored. At the end, the standpoints, recommendations and potential future development on the solar photovoltaic/thermal system with various configurations and nanofluids are deliberated to overcome the barriers and challenges for the practical application. This study demonstrates that the advanced photovoltaic/thermal configuration could improve the system energy efficiency approximately 15%–30% in comparison with the conventional type whereas the nanofluid is able to boost the efficiency around 10%–20% compared to that with traditional working fluid.