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Alumina nanofluid has unique thermo-physical properties which make it appreciable as thermal fluid, but its high extinction coefficient is not significant enough for making it a good solar irradiation absorber. The investigation was conducted on 0.05% v/v water-based alumina nanofluid and results showed that the nanofluid is able to attenuate approximately 50% of solar energy irradiated on the earth surface. Enhancement in absorption coefficient is found very little to increase absorptivity of basefluid using Rayleigh approach. It is found that the scattering coefficient of alumina is dominating absorption coefficient. Although high value of extinction coefficient is observed as usual, scattering is found responsible for this high extinction. The Rayleigh approach cannot explain the optical behaviour of the nanofluid and dominating scattering behaviour points toward alumina nanofluids’ weak capability as radiation absorber.