In this study, an experimental prototype was built to examine the use of an underground water tank as a heat exchange medium with the soil to reduce photovoltaic (PV) panel operation temperatures and simultaneously improve PV efficiency. Three PV systems were evaluated: a benchmark PV panel without cooling (panel A); a PV panel with water spray cooling (panel B); and a PV panel with evaporative cooling (panel C). The cooling techniques in modules (B) and (C) were used to investigate the effects of underground water on the performance of PV panels in arid conditions. Four cases were devised as follows: spray panel back cooling (I), spray front and back cooling (II), spray front and back cooling using an Arduino controller (III), and repeating case III with different water flow rates (IV). Readings were taken from 9:00 am to 4:00 pm from May to August. The experimental results showed that the use of underground water spray cooling led to reductions in the temperature of PV panel B, 14°C, 17.6°C, 18.8°C, and 22.7°C for cases I, II, III, and IV, respectively, when compared with the uncooled panel, and efficiency improved by 3.5%, 4.8%, 18%, and 23.1%, respectively.