Solar energy is the most promising renewable resource with an unbounded energy source, capable of meeting all human energy requirements. Solar Photovoltaic (SPV) is an effective approach to convert sunlight into electricity, and it has a promising future with consistently rising energy demand. In this work, we propose a smart solution of outdoor performance characterization of the SPV module utilizing a robust, lightweight, portable, and economical Outdoor Test Facility (OTF) with the Internet of Things (IoT) capability. This approach is focused on the capacitive load-based method, which offers improved accuracy and cost-effective data logging using Raspberry Pi and enables the OTF to sweep during the characterization of the SPV module automatically. A demonstration using an experimental setup is also provided in the paper to validate the proposed OTF. This paper further discusses the advantages of using the capacitive load approach over the resistive load approach. IoT’s inherent benefits empower the proposed OTF method on the backgrounds of real-time tracking, data acquisition, and analysis for outdoor output performance characterization by capturing Current−Voltage (I−V) and Power−Voltage (P−V) curves of the SPV module.