The photovoltaic–thermal (PVT) systems have been established for providing both electricity and heat using the existing photovoltaic (PV) system set-up. The PVT systems capture panel heat for some useful purpose. It is based on deploying a polymer sheet at the back of the PV panel to accommodate cooling water between the PV panel and the sheet to maximize the contact area between cooling water and panel. The present work compares the performance of a normal PV panel to that of the novel PVT panel. The PVT system isfabricated and experiments are conducted to evaluate electrical and thermal efficiencies. An improvement of 2.17% is observed in the electrical efficiency of the PVT panel in comparison with the normal PV panel. A brief cost analysis along with payback period calculations of the PVT panel is also included.