The energy yield of a Photovoltaic (PV) power plant depends upon the dc power output of the PV module. The irradiance and temperature are the two most important parameters affecting the dc power output. This paper analyses the dc power output of a multicrystalline PV module in the realistic environmental condition with respect to solar irradiance, ambient temperature and cell temperature. The real time data is collected from a 5 MW grid connected solar PV plant located in Jaisalmer, a district in Western Rajasthan. The paper brings forward a crucial and valuable fact that the modules work more efficiently at high temperature and high solar irradiance. For a multicrystalline PV module with maximum dc power output (P max ) at STC condition equal to 118.687KW, analyzed over a period of one year it is found that maximum dc power output (P dc ) at 22 o C ambient temperature and 40 cell temperature is only 72 KW while maximum P dc at cell temperature around 50-55 o C and ambient temperature around 35-38 o C is 90-92KW. Slight negative temperature coefficient for P dc with respect to temperature is observed if ambient temperature and cell temperature is greater than 35 o C and 50 o C respectively. However power output increases in direct proportion to irradiance outweighing the change in temperature. Higher the irradiance, higher is the dc power output, higher is the efficiency and correspondingly higher is the energy yield of the PV module. The multicrystalline PV module works efficiently and gives high yield in the extremely high temperature of Western Rajasthan. Rajasthan which receives world second largest radiation has the capability to meet the energy demands of India and the world as well if solar energy is harnessed in appropriate way.