In this work, a method (based on Peltier effect) is used to improve power efficiency for photovoltaic panel by using the wasted heat energy emitted by cars' exhaust systems. Thermoelectric cooler (TEC) and thermoelectric generator (TEG) modules are used to cool down and therefore improve the efficiency of solar panels used as an auxiliary electrical energy in hybrid cars. The TEG should be mounted on the exhaust system while the TEC should be mounted on the solar panel. MATLAB simulation is presented to show that solar panel efficiency is improved by cooling down the panel's temperature. It is shown that the efficiency is increased by more than 60% when the temperature gradient is greater than 80 OC. A proposed model combination of TEG and TEC modules for optimal use of photovoltaic panel in hybrid applications is presented. Calculations of the output electric power that is generated from TEGS on the exhaust and amount of heat dissipated from photovoltaic panel to the heat sink are performed. The main contribution is the formulation of mathematical model for current control. This current drives the TEG module to power the TEC module in order to achieve the optimal current and therefore improve the coefficient of performance, (COP).