Solar Photovoltaic module converts the light component of solar radiation into electrical output measured in watts and heat part is absorbed by module increasing its operating temperature which reduces the electrical efficiency of the module by 10 to 35%. Hence by using the external cooling system, the module temperature can be reduced to improve electrical power efficiency. This cooling system is called a photovoltaic heat exchanger. The cooling system fitted to the backside of the PV module produces thermal power(in terms of hot water), can be used for low-temperature applications. Combined PV module and heat exchanger generating both electrical and thermal power are called as hybrid Photovoltaic/Thermal (PV/T) solar system. Performance of a direct flow heat exchanger and its effect on the hybrid PV/T system is studied in the current paper. The experimental analysis and results like performance efficiencies of Photovoltaic, thermal and PV/T system at different loading conditions were discussed and evaluated for the latitude of Kalyan, Mumbai. The results at solar radiation of 6.52 kWh/m2/day and water mass flow rate of 0.04 kg/sec through heat exchanger showed improvement in combined PV/T efficiency of 73.7% with PV efficiency of 12.7% and performance ratio of 70.5%.