Photovoltaic panels convert solar energy into electrical energy directly and without mediation. The function of these panels highly depends upon the intensity of solar radiations facing them. Radiation on panel depends on position of the sun in sky (angle of incidence). Efficiency of a photovoltaic panel depends on it’s surface temperature. Important methods for increasing the capacity of electricity generation are tracking the sun and cooling the panels. These methods considerably enhance the panel efficiency and the generated electricity.The sun tracking systems are designed in a way that they track the sun with one axis or two axes, based upon solar azimuth angle and altitude angle. In this research (thesis), a new sun tracking system is applied for installing the photovoltaic panel. In the new sun tracking system, one rotating motor is used instead of two, and more solar radiation is absorbed compared with common one-axis tracking systems. Results show that the sun tracking system gains 2.81% more radiation with respect to conventional one-axis sun tracker. With adjusting angle two times in a year, 4.01% more radiation is gained and adjusting angle four times a year, results in gaining 4.09% more radiation. Cooling the panel through water as a coolant and to decrease the cells’ temperature prevents the decrease of electrical efficiency. Efficiency of photovoltaic panel with cooling (photovoltaic thermal panel) increases 9.38% with respect to the case of not cooling. Moreover, the deferent warm water has thermal energy, and could be used as warm water in water heaters or other thermal systems. Output water temperature is averagely 41.6°C. Keywords: Photovoltaic-Thermal panel, sun tracking system, cooling effect, efficiency.