Lower operating temperatures of the photovoltaic (PV) cells increase the performance and efficiency of any PV installation. The efficiency of solar photovoltaic water pumping system (SPVWPS) decreases considerably with the increase in the PV cell temperature. In this paper, the performance of a 2 hp SPVWPS has been investigated experimentally, for the influence of panel cooling, using water. The experimental observations have been made under climatic conditions of Visvesvaraya National Institute of Technology, Nagpur campus, India, during the year 2018. The performance was evaluated under four different cases: (a) without panel cooling, (b) with water cooling on the top of the panel surface, (c) with water cooling on beneath the surface of the panel, and (d) with water cooling beneath the surface of the panel using jute. The effect of different cooling cases on the various performance parameters such as discharge, power output, pump efficiency, and system efficiency has been analyzed and discussed. The results showed that the water cooling on the top of the panel and beneath the surface of the panel with jute has considerable influence on performance enhancement when compared with other cases.