Increasing surface temperature significantly affects the electrical performance of photovoltaic (PV) panels. A closed-loop forced circulation serpentine tube design of cooling water system is used to effectively manage the surface temperature of PV panels. A real-time experiment was first carried out with a PV panel with a cooling system at HTF flow rates of 60 kg h-1, 120 kg h-1, and 180 kg h-1. Based on the experimentation, a correlation for a nominal operating cell temperature (NOCT) and thermal efficiency for collector was developed for experimental validation of useful energy gained, cell temperature and electric power generation. The developed corrections are validated with electrical power and useful energy gained in photovoltaic serpentine thermal solar collector (PV/STSC) and fit into experimental results with a deviation of 1% and 2.5 % respectively. Further, with the help of developed correlations, a system was developed in the TRNSYS tool through which an optimization study was performed based on electric and hot water demand. The findings indicate that an optimal system with an 8 m2 PV/STSC area, a HTF flow rate of 60 kg h-1, and TES system having a volume and height of 280 l and 0.8 m could meet 91 % and 33 % of the hot water demand for Ac loads and 78 % or DC loads, respectively.