Electrical energy of photovoltaic (PV) modules drops by 0.5% for each degree increase in temperature. Direct water cooling of PV modules was found to give improved electrical and thermal yield. A prototype was put in place to analyse the field data for a period of a year. The results showed an initial high performance ratio and electrical power output. The monthly energy saving efficiency of the directly water cooled module was found to be approximately 61%. The solar utilisation of the naturally cooled PV module was found to be 8.79% and for the directly water cooled module its solar utilisation was 47.93%. Implementation of such systems on households may reduce the load from the utility company, bring about huge savings on electricity bills and help in reducing carbon emissions.