Despite the growing global reliance on renewable energy, traditional static photovoltaic (PV) installations suffer from efficiency losses caused by the angular misalignment between solar panels and the sun's trajectory throughout the day. To overcome these geometric constraints and improve photon capture, this study develops an IoT-enabled Smart Solar Tracking System based on the Arduino Uno microcontroller. The system employs a closed-loop control mechanism utilizing two Light Dependent Resistors (LDRs) configured as differential optical sensors, which continuously monitor variations in light intensity to estimate the sun's azimuthal position. When a significant imbalance in light distribution is detected, the microcontroller computes the error signal and actuates a servomotor to reorient the PV panel, thereby minimizing the angle of incidence. Experimental evaluations comparing the proposed tracker with a fixed-tilt PV panel demonstrate substantial performance improvements, with the tracking mechanism yielding an average 48% increase in power output and enhanced voltage stability during peak irradiance periods. By integrating sensor-based actuation with microcontroller logic, the prototype presents a scalable and technically feasible approach to improving the energy yield of small-scale solar-harvesting systems without manual intervention. The use of low-cost and easily deployable components further reinforces its suitability for rural, domestic, and off-grid renewable energy applications. This work addresses a key research gap, the absence of affordable, experimentally validated, sensor-driven solar tracking systems, by presenting a differential LDR-based, IoT-supported design that offers quantifiable improvements over traditional fixed-tilt PV configurations. The findings demonstrate that a low-cost, sensor-assisted tracker with IoT connectivity provides a practical and scalable solution for enhancing PV energy capture. Limitations such as servo power consumption and reduced LDR sensitivity under cloudy conditions are identified and discussed to guide future development.