Abstract: Photovoltaic is the method of producing electricity by using the solar cells. The main problem associated with the solar cell is its lower efficiency. Photovoltaic cell converts only about 15% of the solar energy falling into the useful electricity. The increase in the temperature increases the resistance of these cell and in turns decreases the cell efficiency. So, cooling these panels is the effective way of increasing the cell efficiency. This work here primarily concentrate on two objectives. First one, to show that the performance of the solar panel increases by reducing the temperature. This cooling is done by air cooling or water cooling on the self designed modified panel. The second objective is to show that the heat removed can be used for other useful purpose like room heating, supplying to power plants, etc. In this present work the solar panel is cooled by passing air with the help of blower and cooling the panel by water based system by making the copper channels on the rare side of the panel.