Concentrated photovoltaic (CPV) technology makes use of cheap optical elements to amplify the irradiance and focus it on small-sized solar cells enabling the extraction of higher amounts of electricity. However, increasing the solar concentration raises the temperature of the PV cell which can deter its performance and can also cause its failure. To combat this issue both active and passive cooling mechanisms are utilized for different types of CPV systems. In this study, we determine the limits of passive cooling systems and establish when an active cooling system is needed based on the recommended operating temperature of the solar cell. We investigate the temperature characteristics of the solar cells bonded to three different substrate materials under different solar concentrations. Results showed that cell temperature is linearly dependent on the concentration ratio and ambient temperature independent of the substrate material. Further, the integration of a micro-finned heatsink results in higher heat dissipation by 25.32%, 23.13%, and 22.24% in comparison with a flat plate heatsink for Direct Bonded Copper (DBC), Insulated Metal Substrate (IMS), and Silicon Wafer (Si wafer) substrates respectively. The low thermal resistance of the IMS substrate compared to the DBC and the Si wafer substrates result in the best thermal performance in terms of maintaining the cell temperature < 80 °C and allowing a wider range of high concentration ratio.