This study presents the synthesis of environmentally benign, single-layered spectrally selective Ag/NiO nanocoating absorbers using a green synthesis method. Various characterization techniques, including Rutherford backscattering spectroscopy (RBS), X-ray diffraction (XRD), scanning electron microscopy (SEM), transmission electron microscopy (TEM), and atomic force microscopy (AFM), were used to examine the effects of plasmonic Ag concentration on the structural, chemical composition, and surface morphology of the nanocomposites. The optical properties of the deposited nanocoatings were investigated using a UV–Vis-NIR spectrophotometer in the solar spectrum region (300–2500 nm) and an FT-IR spectrophotometer in the infrared wavelength region (3000–20,000 nm). XRD results confirmed the coexistence of a face-centered cubic phase of Ag and NiO in the Ag/NiO nanocermet thin films. SEM and TEM topography revealed uniformly distributed nanosphere NiO thin films and cubic Ag metal with better dispersibility and crystallization. The RBS spectrum of the samples showed a homogeneous distribution of Ni, Ag, and O atoms throughout the coatings. Ag/NiO nanocoatings deposited with 8 wt% Ag content exhibited excellent solar absorptance (α) = 0.95 and thermal emittance of (ɛ) of 0.08. This enhancement is primarily attributed to the localized surface plasmon resonance (LSPR) effect associated with the embedded Ag nanoparticles, which facilitates more effective utilization of light.