Efficient full-spectrum solar energy utilization shows great potential to improve solar energy conversion efficiency. In this paper, a spectral splitting concentrated photovoltaic/thermal hybrid system based on a wave-selecting filter-coated compound parabolic concentrator and linear Fresnel reflector mirror field is developed. Optical models to simulate the linear Fresnel reflector have been developed and validated. With the wave-selecting filter coated compound parabolic concentrator, the visible and near infrared spectra transmit onto the photovoltaic cells, while the rest are reflected to the receiver tube. Furthermore, a simplified receiver indoor test prototype is designed to investigate the characteristic of solar photovoltaic module with the spectral filter in the context of the compound parabolic concentrator. The measured I–V curves are compared with the modeled results. Additionally, the thermodynamic performance of the system is analyzed. Parametric studies are performed to investigate the effect of key design parameters including the mirror width, focal length and the radius of the receiver tube on the solar flux density and the exergy efficiency. An exergy efficiency of 35.51% and an optical efficiency of 94.78% are achieved. With a preliminary techno-economic analysis, the levelized cost of the electricity of the system is $0.209/kWh with a payback period of 10 years.