Photovoltaic (PV) is equipped with additional cooling system to reduce the cell temperature and enhance its efficiency. Numerous studies have addressed the issue using various methods such as thermoelectric, passive, and active cooling. In this work, the excess heat is taken as additional energy input considering the trend of PV direct heating system. The present study introduces PV and thermal collector as one compact system for heating application. PV output is connected to heating element while thermal collector harvests the waste heat from PV module. It allows the system to accumulate higher effective heat energy, which is useful for residential water heating applications. Experimental work is performed using 50 Wp monocrystalline PV by varying the filler material (sand and grease) inside the thermal collector and flowrate of the working fluid. The effect of filler material is observed as rapid heat dissipation, which is obtained by sand. Also, coolant flowrate affects the maximum temperature output and the accumulated heat energy from PV module. Despite the variation, the cooling effect from thermal collector reduces the PV temperature up to 30.1% and enhances the electric generation by 15.1%. The collected heat en-ergy reaches a maximum value of 129.3 Watts, while peak electricity output only 46.4 Watts. The heated water from PV output reaches maximum temperature of 75 °C with maximum coolant temperature of 48.7 °C. It shows that the system is highly reliable for residential heating, offering a compact PV-thermal collector with higher power output.