In this paper, a short-circuit current-based adaptive perturb and observe maximum power point tracking algorithm is proposed to extract the maximum power from photovoltaic (PV) panel under sudden changes in the irradiance. This scheme is divided into two algorithms: 1) current perturbation algorithm; and 2) adaptive control algorithm. The current perturbation algorithm makes the PV panel operate at maximum power point. The adaptive control algorithm identifies the operating limit violation and sets a new operating point nearer to maximum power point. These limits are derived in terms of changes in the irradiance and current. The new operating point is set by estimating the short-circuit current. This algorithm proposes variable current perturbation, which varies continuously with the irradiance. A boost converter is used to realize the proposed algorithm. The proposed algorithm is compared with a conventional algorithm and validated for sudden changes in the irradiance through the experimental results.