In this manuscript, a solar cavity packed with hybrid PV-TEG modules has been designed, fabricated and investigated experimentally. Reducing the re-radiation loss of solar radiative power in a cavity receiver has led to an increase in module temperature. TEG modules convert directly heat into electricity using Seebeck effect induced by a temperature difference between them. They were utilized to decrease the PV module temperature and generate extra power. The device was subjected to a simulated solar radiation of 1000 W/m(2) over its aperture in a laboratory environment. It was also tested under solar irradiance which varied during daily hours. The efficiency of the hybrid system reached a peak of 21.9% at the start of production in the morning when the system was under real sunlight exposure. The significant part of power produced by the PV panels which was strongly affected by the temperature increase, and it consequently caused the efficiency drop despite the solar irradiance and ambient temperature enhancement. However, during the afternoon, as the ambient temperature and solar irradiance decreased, the efficiency increased to 20%. The measurements of the current and voltage of the system have revealed that the hybrid PV-TEG power generation is three times greater than a flat PV-TEG system power production. The hybrid cavity PV-TEG efficiency improvement has been 18.9% in comparison with the conventional system, whereas the economic analysis of the cavity system has shown that the levelized cost of energy (LCOE) is 9.432 US $/kWh which is 67% greater than the PV-TEG flat plate LCOE.