The photovoltaic (PV) module efficiency is affected by environmental conditions, particularly by changing solar insolation and temperature conditions. This paper presents a temperature based Maximum Power Point Tracking (MPPT) where a temperature sensor is used to calculate the optimum voltage to be imposed across the photovoltaic devices and a PV cooling system using water as the cooling liquid to extract the heat from the backside of the PV panel which gives higher efficiency and increased lifetime of the PV panel. Theoretical simulation results are presented in order to analyse the feasibility of the concept.