The Floating Solar Photovoltaic (FSPV) systems are expected to perform relatively at a higher efficiency level as compared to ground mounted PV systems. The major factor affecting the operating efficiency of a solar panel is the operating temperature of the PV panel which is relatively lower as compared to ground mounted PV system. To accomplish this, an experiment setup of FSPV system has been developed which consists of solar panels operating at different heights above water surface. The findings indicate that FSPV modules can reduce the module temperature by up to 4°C – 7°C. The performance of FSPV has been analysed under diurnal conditions. The performance has been assessed in terms of power output by utilising module parameters. The results highlight the power output from solar panel under varying heights help to optimize the operating heights of the solar panels over the water bodies to achieve maximum power output. Therefore, it is also advised for FSPV to raise the PV modules to their optimal height. The FSPV systems at 500 mm height provided 1.8-3.78% higher power output than ground mounted PV systems, maximum of all the panels above water.