The efficiency of photovoltaic systems is significantly affected by operating temperatures, which can lead to considerable energy losses, particularly in high-irradiance regions. Despite advancements in photovoltaic technology, excessive heat buildup remains a major challenge, reducing power output and system longevity. Various cooling techniques have been explored to mitigate thermal effects; however, there is still a gap in understanding the comparative effectiveness of different methods, particularly in extreme environmental conditions. This paper aims to address this gap by evaluating and recommending two promising cooling strategies: evaporative cooling and water cooling. Evaporative cooling leverages the natural heat absorption of water evaporation to reduce panel temperatures efficiently, making it particularly suitable for hot and arid climates. Water cooling, on the other hand, directly dissipates heat through fluid circulation, offering higher efficiency gains and potential integration with hybrid photovoltaic-thermal systems. By analyzing the benefits and practical implementation of these techniques, this study provides valuable insights into optimizing photovoltaic system performance and extending operational lifespan. Future research should focus on refining these methods for large-scale applications while assessing their economic and environmental viability.