Solar co-generation is a cutting-edge technology that enables the instantaneous production of electricity and heat energy by employing concentrated solar power (CSP) systems. This study presents the development and experimental analysis of a novel small-scale solar co-generation system, utilizing concentrated photovoltaic (CPV) cells integrated into a solar paraboloidal dish concentrator (SPDC) for simultaneous electricity and heat production. The system, designed with a high concentration ratio, employs a CPV module composed of four 1 cm × 1 cm cells mounted on a flat receiver of a parabolic dish concentrator with an aperture area of 12.6 m2. Experimental results, obtained over three consecutive days, demonstrate that the CPV module achieves an electric power output ranging from 480 to 645 W daily, while the SPDC system generates thermal energy between 395 and 725 W. The economic analysis indicates a cost of ₹10.75 per unit of electricity, with a payback period of approximately 13.5 years, assuming a 20-year system lifespan. Additionally, the reliability of the CPV module and the impact of varying encapsulation materials were critically assessed, providing insights into potential improvements and long-term performance. The findings underscore the viability and economic potential of solar co-generation systems employing CPV technology, contributing to the advancement of sustainable energy solutions.