<p>Solar Photovoltaic (PV) panel performance is closely tied to its operating temperature, with efficiency tending to decline as temperatures increase. Phase change materials (PCMs) have garnered interest for their capacity to store thermal energy and facilitate passive cooling in response to this challenge. Due to the problem of low thermal conductivity, PCMs are not widely used nowadays. Instead, Nano Dispersed Phase Change Material (NDPCM) is being used as a thermal energy storage application. The Al₂O₃ nanoparticles dispersed throughout the PCM create an NDPCM. The present paper utilizes a MATLAB-based thermal model to assess how effectively NDPCMs can regulate the temperature of a solar PV panel. Numerical simulations have been carried out under constant different solar irradiance conditions to compare temperature variations between PV systems with and without NDPCM integration. The average power output of the PV panel, as well as integrated with NDPCM, attains its maximum value at higher solar irradiance. The results demonstrate that NDPCM integration significantly reduces PV panel temperature and enhances thermal stability. Under high solar irradiance, the average power output increased by up to 11.7%, while the PV panel temperature decreased by approximately 30%.</p>