The efficiency of solar photovoltaic panels declines significantly as their surface temperature increases beyond optimal levels. This paper presents a smart, temperature-controlled cooling system based on an Arduino UNO microcontroller to enhance solar panel performance by mitigating overheating. The system integrates a DS18B20 temperature sensor and a moisture sensor to monitor real-time environmental conditions. When the temperature exceeds a defined threshold, the Arduino activates a CPU fan and water pump to dissipate heat effectively. Experimental testing demonstrated an efficiency improvement of approximately 10% to 12% during peak solar conditions. A hysteresis logic-based system with autonomous control is used to control the amount of energy and water utilized, by only cooling when required. An LCD screen displays real-time information locally on-site, while an ESP8266 WiFi module sends information to a "cloud" so that remote monitoring can occur through the ThingSpeak cloud service. The entire system operates entirely from solar energy and is capable of being operated off-the-grid as well as being environmentally friendly. Due to its low cost, modularity, and energy efficiency, this smart cooling solution provides a viable solution for rural areas or areas with limited resources to enhance the performance of photovoltaic systems.