The ever-increasing demand for sustainable energy has drawn attention towards photovoltaic efficiency and reliability. In this context, the shading and associated hotpot degradation within PV modules has become an important area of research and development. The experimental approach of this paper aims to investigate single cell shading in high efficiency monocrystalline silicon PV PERC modules. Prior to the outdoor experiment, the PV module underwent experimental testing under STC to determine variation in electrical and thermal behaviour due to partial shading. The indoor experiments are performed using Sun-simulator and the I–V and P–V curves are analysed. Further, the outdoor experiments were performed under realistic conditions. In both cases, results showed that during 40–60% shading in single cell leads to critical shading scenario causing significant drop in power output in comparison with their unshaded conditions. The maximum power loss of 36.34% and 42% is recorded for indoor and outdoor experiments. The outdoor experiments recorded hotspot temperature of 85–90.1 °C under respective 40% and 60% critical shading scenarios. The efficiency recorded in the time interval of 11:00:00 and 11:30:00 was highest for the solar radiations between 940 and 990 W/m2. The maximum drop in efficiency is recorded from noon till 13:30:00 time of the day. Development of hotspot is directly related to the failure or malfunction of protecting system. Hence the importance of type of PV technology, amount of shading, and critical shading scenario is presented in the study. This study is important for researcher and manufacture to consider single cell shading in PV technology.