The application of nano-fluids in refrigerating systems is considered to be a potential way to improve the energy efficiency and reliability of HVAC&R facilities and to make economic the use of environment-friendly refrigerants. In this paper, we report a method that uses nanoparticles to enhance the energy efficiency of retrofitted residential air conditioners (RAC) employing HFCs as alternative refrigerants. The reliability and performance of RAC with nanoparticles in the working fluid have been investigated experimentally. A new mineral-based nano-refrigeration oil (MNRO), formed by blending some nanoparticles (NiFe2O4) into naphthene based oil B32, was employed in the RAC using R410a as refrigerant. A method showing how to disperse the NiFe2O4 nanoparticles in the mineral oil refrigeration lubricants is presented together with an investigation of their stability. The solubilities of the new MNRO in R134a, R407C, R410a and R425a were measured. The performances of the RAC, such as the cooling/heating capacity, the power input and the energy efficiency ratio, were determined. The results indicate that the mixture of R410a/MNRO works normally in the RAC. The cooling/heating EER of the RAC increased about 6% by replacing the Polyol-Easter oil VG 32 lubricant with MNRO. (C) 2010 Elsevier B.V. All rights reserved.