In recent decades, advances in the development of solar tracking systems (STSs) have led to concentrating solar technologies to increase their energy conversion efficiency. These systems, however, still have areas of opportunity or improving their performance and reducing their manufacturing costs. This paper presents the design, construction and evaluation of a high-precision dual-axis solar tracking system with a technology readiness level of 7–8. The system is controlled by a low-cost Arduino board in a closed-loop control using a micro-electromechanical solar sensor. Real-time tracking experiments were performed under a clear sky as well as during partly and mostly cloudy days. Solar tracking accuracy was evaluated in an operational environment using test procedures adapted from the International Electrotechnical Commission (IEC) 62817 standard. The total mean instantaneous solar tracking error on a clear day measured with a calibrated digital solar sensor was 0.37${}^{°}$ and 0.52${}^{°}$ with a developed pinhole projection system. Similarly, the total mean reported solar tracking accuracy achieved was 0.390${}^{°}$ on a sunny day and 0.536${}^{°}$ on a partially cloudy day. An annual power generation analysis considering a conventional photovoltaic (PV) panel system and a typical concentrator photovoltaic (CPV) module as payloads was also presented. Simulations showed an increase in the generation of up to 37.5% for a flat panel with dual-axis tracking versus a fixed panel. In the case of the CPV system, first, a ray tracing study was implemented to determine the misalignment coefficient, then the annual power generation was estimated. The developed STS allowed the CPV modules to reach at least 90% of their nominal energy conversion efficiency.