Solar energy is a clean, green and renewable source of energy. It is available in abundance in nature. Solar cells by photovoltaic action are able to convert the solar energy into electric current. The output power of solar cell depends upon factors such as solar irradiation (insolation), temperature and other climatic conditions. Present commercial efficiency of solar cells is not greater than 15% and therefore the available efficiency is to be exploited to the maximum possible value and the maximum power point tracking (MPPT) with the aid of power electronics to solar array can make this possible. There are many algorithms proposed to realize maximum power point tracking. These algorithms have their own merits and limitations. In this paper, an attempt is made to understand the basic functionality of the two most popular algorithms viz. Perturb and Observe (P & O) algorithm and Incremental conductance algorithm. These algorithms are compared by simulating a 100 kW solar power generating station connected to grid. MATLAB M-files are generated to understand MPPT and its dependency on insolation and temperature. MATLAB Simulink software is used to simulate the MPPT systems. Simulation results are presented to verify these assumptions.