We report here our studies on photoelectrochemical (PEC) cells where two commonly used photosensitive dyes, thionine and Rose Bengal were used as photosensitizers for conversion of light energy to electrical energy. The performance of the cells increased radically in presence of oxidized multiwalled carbon nano tubes (OMWCNTs) as reflected by the values of conversion efficiency (∼3.69%) and open circuit voltage (∼548.9 mV). To understand the role of OMWCNTs in enhancing the performance of the cells, the spectral study of dye–OMWCNT mixed systems were performed. The absorption spectra indicated more absorption of incident photons in presence of OMWCNT, whereas the infrared spectra suggested that the basic structure of dyes remained unaltered. The spectral studies implied that the dye molecules got adsorbed on OMWCNTs side walls causing efficient absorption of the incident light quanta. Moreover, insertion of planar lipid membrane (PLM) separating the two chambers of PEC cell could effectively counteract the recombination of photodissociated charges and thereby caused better storage capacity of the PEC cells with further increase in efficiency.