Need for power could be addressed by non – conventional resources since conventional resources are rapidly depleting. Among the non - conventional resources, solar energy has been proven for clean energy generation and is one of the fastest-growing forces in the market because of the decreasing trend of cost and also nowadays there are several major directions for solar technology development. Furthermore, by determining the amount of malfunctioning modules and strings, it is possible to avoid power loss. Thus, in order to address these issues, a novel approach is presented to discern between faults and partially shaded circumstances, as well as the number of mismatch modules and strings, when the irradiation is changed dynamically. Increased demand for power through solar sources made us think of remote identification of Faults in Solar panel and their isolation. In this paper, we present the automatic detection of faults in solar panels and further we present the remote isolation of faulty solar panels. The proposed system works based on the solar panel output voltage. The panel voltage will be monitored continuously through the Internet of Things (IoT), and whenever the output voltage becomes more/less than the prescribed/set value due to any of the faults, the respective panel gets isolated from the system. This paper helps in early fault detection and real-time diagnostic and also contributes to avoiding loss of energy, equipment damage and safety hazards.