It has been found a linear progression between the panel temperature and its efficiency. A novel cellulose pad arrangement, which is saturated with water, at back surface of photovoltaic panel for cooling has achieved better results. The experimental results showed a reduction in maximum PV panel temperature at using the proposed water cooling system. The average temperature of the PV panel dropped 10.1°C and an increase in average solar panel efficiency about 20.8% during operating time. Then, a comparison between the PV panel results cooling by natural convection and using the proposed water cooling system will reveal the most efficient.