Abstract Irradiations incident on the photovoltaic module are converted only 15–20% into electrical energy and remaining are transformed into heat and drop electrical efficiency. Therefore, to harness both the thermal and electrical energy, hybrid photovoltaic thermal system is an optimum option. Moreover, phase change materials add more advantages of PV cell cooling and heat storage. A novel thermal collector has been designed as PVT and PVT-PCM systems to improve the heat transfer and performance. The 3D numerical analysis is done with COMSOL Multiphysics® software, and is validated at different volume flow rates of 0.5LPM to 3LPM, by experimental investigation at conditions of keeping the inlet water and ambient temperature at 27 °C and solar irradiation at 1000 W/m2. The experiment is carried out in indoor weather under controlled operating parameters and conditions with passive cooling of the module. Maximum 12.4% and 12.28% electrical efficiency of PVT is achieved numerically and experimentally respectively. Similarly, 12.75 and 12.59% electrical efficiency for PVT-PCM is obtained for experimental and numerical cases respectively. For PVT system, 10.13 and 9.2% electrical performance is improved. For PVT-PCM the electrical performance improvement is obtained as 12.91 & 12.75% numerically and experimentally respectively.