With the development of distributed generation and the corresponding importance of the P.V. (photovoltaic) system, it is desired to operate a P.V. system efficiently and reliably. To ensure such an operation, a monitoring system is required to diagnose the health of the system. This paper aims to analyze a P.V. system under various operating conditions to identify parameters-derived from the I-V (current-voltage) characteristics of the P.V. system-that could serve as electrical signatures to various faulty operations and facilitate in devising a monitoring algorithm for the system. A model-based approach has been adopted to represent a P.V. system, using a one-diode model of a practical P.V. cell, developed in MATLAB/Simulink. The modelled system comprises two arrays, while each array has two panels in series. It was simulated for various operating conditions: healthy condition represented by STC (Standard Testing Condition), O.C. (open-circuited), soiling, P.S. (partial-shading), H.S. (panels hotspots) and P.D. (panels degradation) conditions. For the analysis of I-V curves under these conditions, six derived parameters were selected: Vte (equivalent thermal voltage), MCPF (maximum current point factor), Ri (currents ratio), S (slope), and Dv and Di (voltages and currents differences, respectively). Using these parameters, data of the actual system under various conditions were compared with its model-generated data for healthy operating conditions. Thresholds were set for each parameter's value to mark normal operation range. It was observed that almost each considered fault creates a unique combination of sensitive parameters whose values exceeds the pre-defined thresholds, creating an electrical signature that will appear only when the corresponding conditions on the system are achieved. Based on these signatures, an algorithm has been proposed in this study which aims to identify and classify the considered faults. In comparison to other such studies, this work has been focused on those sensitive parameters for faults identification which shows greater sensitivity and contribute more to creation of unique sets of sensitive parameters for considered faults.