The electrical power generated by a photovoltaic panel is crucial due to the high demand for electricity. Operating temperatures above the Standard Test Conditions (STC) negatively impact the output power, which is a significant drawback of this technology. Therefore, it is essential to keep the front and back surface temperatures of the photovoltaic panel as low as possible. Phase Change Material (PCM) is a good passive cooling method, but it has low thermal conductivity. This paper introduces a novel material to address this issue. Iron Filling Waste (IFW) is integrated with PCM to cool the photovoltaic panel. This investigation is presented experimentally with three modules. The highest surface temperature of the reference panel, 78 °C, is recorded for the uncooled module, while with PCM- IFW is 70.5 °C. The comparative analysis shows that the PV module cooled by PCM-IFW achieved an efficiency enhancement and power output increase of 39 % and 33 % respectively, compared to the reference panel without cooling. IFW-PCM achieves an average enhancement in efficiency and output power by 23 % and 11 %, respectively, compared with panels that use PCM only. Also, IFW enhances thermal conductivity without any additional economic cost for the cooling systems.