The objective of this research is to develop a new technique for improving the efficiency of Photovoltaic (PV) panels. This technique is done by coating the front surface of the PV panel by a fine layer of oil in order to increase the amount of light transmitted to the panel, and consequently its efficiency. Different types of oils are examined, including both mineral oils and natural oils. In case of mineral oils; vacuum pump oil (Labovac oil), engine oil (Mobil oil) and brake oil (Abro oil) are examined, while in case of natural oils; olive and sunflower oils are examined. An experimental setup has been developed to examine the performance of the PV panels as a function of oil coatings. The experimental setup consists of an artificial sun, the PV panel under investigation, a cooling system and a measuring system to measure the performance of the panel. It has been found that coating the PV panel with a fine layer of Labovac oil, 1 mm thick, improves the efficiency of the PV panel by more than 20%, and this is due to the high transmissivity of the Labovac oil compared to other oils. However, the Labovac oil has a drawback which is overheating of the panel due to its high transmissivity. Coating of PV panels with a fine layer of Labovac oil should be done only in cold regions, in order to avoid the heating effect that can decrease the power output of PV panels. (C) 2016 Elsevier Ltd. All rights reserved.