This paper focuses on PV power conversion under different internal and environmental conditions with non-constant load, connected to a smart grid system. Due to environmental conditions, the PV system is a non-linear system and difficult to predict the power conversion. In the aspect of internal variables, it includes the five parameters of the single diode solar cell model identify their sensitivity through error function. It also identifies the relation between environmental conditions, mainly: irradiance, temperature and wind speed. The modeling and computational simulation with laboratory work identify the effects of internal and environmental effect on the system. The model gives details about the sensitivity of each environmental condition using error function. The work includes the decrease of energy conversion by the solar panel as a function of time due to the shadow effect that affects its performance. Besides these, a smart system is introduced as a DAQ system in laboratory environment to get in real time the power conversion value with the P-V and I-V characteristics of the PV panel.