Traditional ground-mounted photovoltaic (PV) systems encounter considerable obstacles, including land scarcity and performance decline at elevated operating temperatures. Canal-mounted photovoltaic (CM-PV) systems have significant benefits by leveraging existing canal infrastructure, improving thermal efficiency, and mitigating water evaporation-an increasingly pressing concern in dry and water-scarce areas. Nonetheless, empirical investigations on CM-PV systems are limited in the literature, especially regarding practical application and operational constraints. This research seeks to assess the energy efficiency and water conservation capabilities of CM-PV systems in comparison to conventional ground-mounted PV panels under actual working settings inside a hot and arid area. Experiments were performed to assess panel surface temperatures, energy efficiency, and water evaporation at various tilt angles (8 degrees, 23 degrees, and 38 degrees). CM-PV panels demonstrated surface temperatures that were up to 6.33 degrees C lower and, on average, 4.2 degrees C lower than ground-mounted panels, leading to enhanced energy efficiency. Shaded canals equipped with photovoltaic panels shown reduced evaporation rates relative to open canals; specifically, at an 8 degrees tilt, water evaporation decreased from 10 to 6 L. Reduced tilt angles increased closeness to the water surface, hence enhancing cooling and performance. Although data illustrate the benefits of CM-PV systems in energy and water management, obstacles persist, such as long-term durability, integration into diverse canal geometries, and cost-effectiveness. This study offers substantial empirical data to address these deficiencies and supports the potential of CM-PV systems as a dual-benefit approach for sustainable energy and water conservation.