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Maximum power point tracking (MPPT) techniques are used in photovoltaic (PV) systems to extract maximum power from the PV module. Many MPPT techniques have been published such as perturb and observe (P&O). Perturb and Observe (P&O) maximum power point tracking (MPPT) algorithm is widely applied due to its simplicity, costless and easy implementation. However, P&O tracking algorithm suffers from deviation due to change of irradiance. In order to avoid the deviation, in this paper we have proposed a modified P&O technique. This modified technique is proposed to avoid the problem of irradiance variation by incorporating the information of voltage, current and power in the decision process for updating the duty cycle of the converter. Simulation result showed that the proposed algorithm accurately tracks the maximum power and avoid the deviation in fast changing irradiation. The effectiveness of proposed MPPT algorithm is verified using MATLAB/Simulink.