The floating photovoltaic (FPV) system has attracted wide attention due to its numerous advantages that out-performance the land mounted photovoltaic (LPV) system. However, in the arid coastal area, the FPV surface temperature could reach a temperature that effects negatively the performance of the panel and its lifespan. So, in this paper, an experimental study investigating the performance of the new partially submerged photovoltaic system (PSPV) as a new modification to release the harmful thermal energy that elevates the panel temperature into the surrounding water. The developed system consists of a floating photovoltaic panel that has a segment of the panel's length submerged in the water. The experimental set up were constructed and tested under summer Egyptian conditions. A performance comparison between the PSPV system for various submerged lengths on the PSPV and LPV systems has been implemented to assess the significance of the modified system. The performance pattern with a minimum radiation deflection for detecting the optimal scenario was explored using three submerged lengths of 5,10, and 20 cm. The outcomes revealed that the PSPV module's average surface temperature was always lowered than the LPV module. It also noted that PSPV produces up to 18.2% more daily electricity than LPV by increasing the submerged length to 10 cm. An economic analysis has been performed on the proposed system that showed a reduction in the LCOE from 0.8 $/kWh for the PSPV to 0.9 $/kWh for the LPV while the potential of the PSPV in saving 51.92 kgCO2 / summer season.