Detail analysis of microcontroller (μC)-based smart dual-axis automatic solar tracking system utilizable for different purpose is presented in this paper. Working of the proposed smart tracking system is based on the automatic rotation of photovoltaic (PV) panel depending on the intensity of sun light. It will help in maintaining the alignment of PV panels with the Sunlight to obtain maximum solar power at any instance. Intensity of sunlight on a particular alignment of solar PV panel varies throughout the day. As the intensity of light on PV panel decreases the proposed smart tracking system has the intelligence to automatically redirect the panel alignment to get maximum intensity of light. Four Light Dependent Resistor (LDR) sensors are placed on the surface of the PV panel to detect the intensity of light. Two servomotors are employed in the back side of PV panel system to align the panel with maximum luminous intensity. Design and construction of the proposed tracking system is presented to measure the efficiency over the fixed PV panel. Experimental results indicate that the power output of the PV system, using the proposed tracking system is increased up to 19.73% compare to the traditional fixed PV panel. The efficiency of the proposed design is considerably higher and comparable to the existing design which has the average efficiency around 12–15%. © 2015 The Authors. Energy Science & Engineering published by the Society of Chemical Industry and John Wiley & Sons Ltd.