Solar energy is the most abundant and easily available renewable source of electricity. However, the installed solar panels may not always provide the optimal amount of energy because of the changing position of the sun from east to west. This study focused on extending the research and development of a model for a dual-axis solar panel tracking system with a cooling mechanism. The primary objective of this mechanism is to program the Arduino board in a way that ensures continuous alignment of the panel direction and Light-Dependent Resistor (LDR) sensors with the sun's rays. Direct Current (DC) motors were employed to adjust the panel direction accordingly. Sustained exposure to sunlight can lead to reduced efficiency when the panel is heated. To counteract overheating, an improved cooling system was implemented utilizing water and a pump arrangement to enhance the productivity of the panel. Water is sprayed or sprinkled using various Pulse Code Modulation (PCM) techniques, effectively maintaining the solar panel temperature at an optimal level. This mechanism can be enhanced by integrating a Real-Time Clock (RTC) to accurately track the direction of the sun. This ensures that the panel remains properly positioned even in the event of a power outage, enabling the utilization of solar energy for electrical purposes. This research focuses on developing an efficient solar panel tracking system with a cooling mechanism to maximize the energy output and address temperature-related efficiency issues. The integration of advanced features such as RTC further enhances the reliability and usability of the system.