In this paper, a novel fault detection and diagnosis technique for a grid-tied photovoltaic (GTPV) with the ability of module-level fault location and differentiation is proposed. The proposed system measures the voltage, current, and temperature of the PV modules using low-cost sensors and critically compares them with the mathematical evaluated data to locate the type and location of the fault in the system. Additionally, a power line communication (PLC)-based low-cost PV monitoring system for tracking the operation of individual modules along with a fault detection algorithm is proposed to detect and locate the fault in the system. An intuitive online web application is also created to make it simple for users to view monitored data online. The suggested method is shown to have reduced computing needs; thus, the transmission of data and fault diagnosis is performed using the same microcontroller without the need for extra hardware or simulation software. The usefulness of the proposed method in identifying different fault occurrences in GTPV systems has been shown via experimental findings.