Accurate modelling of photovoltaic (PV) panels is essential for the design, optimization, and performance evaluation of residential and industrial solar energy systems. This study offers a comprehensive comparative analysis of the single-diode model (SDM), two-diode model (TDM), and three-diode model (ThDM) used to simulate the electrical behavior of PV panels under varying environmental conditions (EC). Each model was implemented and evaluated in MATLAB/Simulink, using parameters derived from the commercial Kyocera KC200GT module. Simulations were conducted across a range of irradiance levels (200–1000 W/m2) and temperatures (25–60 ℃), and the resulting current-voltage (I-V) and power-voltage (P-V) curves were validated against experimental data. Although computationally efficient and widely adopted, the SDM revealed limitations under low irradiance, high temperatures, and partial shading due to its simplified representation of recombination mechanisms. In contrast, the TDM achieved greater accuracy by accounting for both diffusion and space-charge (depletion) region recombination, enhancing simulation fidelity near the maximum power point (MPP). The ThDM further advanced this framework by introducing a third diode to capture more complex recombination processes associated with grain boundaries, trap-assisted mechanisms, and spatial non-uniformities. While this model demonstrated the highest agreement with experimental results, it involved increased computational demands and parameter extraction complexity. The simulation findings emphasize the trade-offs among simplicity, accuracy, and computational cost in PV panel modelling. While the SDM remains adequate for standard applications, the TDM and ThDM are better suited for advanced diagnostics, MPP tracking algorithm development, and modelling of emerging PV technologies. Future research will focus on real-time implementation, large-scale array simulation, and optimization under partial shading and ageing conditions.