Photovoltaic (PV) power generation is one of the most rapidly growing energy sources, which is affected by the amount of solar radiation and PV temperature. The efficiency of PV panels decreases as their temperature increases. Phase Change Materials (PCMs) can absorb considerable amount of heat when they are used at the back of PV panel. In this experimental work, PCM is used to cool tracking PV panels to increase their power output. The melting dynamics of PCM is very different during tracking compared to previous research on fixed panels. Experiments were conducted under outdoor climate conditions in Melbourne, Australia. The PCM temperature distribution is measured during melting and solidification. Results show that using PCM for tracking PV panel reduces the temperature of the PV panel, thus increasing the efficiency. The efficiency of PV panels with PCM is on average 4.6% higher than that without PCM, with the maximum efficiency increase being 6.8%. Using PCM for the tracking PV panel decreases the temperature of PV panel by, on average for the day, 9.1 °C and the maximum temperature difference is 16.3 °C. This study has applications for tracking panels used in hot environments where summer temperature can significantly affect PV performance.