The paper presents new MPPT algorithm for partial shading of series connected PV cells/modules. In the shaded condition, there is a problem of decrease in the total output power of the PV system. The proposed algorithm aims to reduce this problem by active bypassing of the shaded cells. The algorithm senses the irradiance of each cell and performs calculation in order to decide if to actively bypass the shaded cell or not. Extensive simulation results proved that algorithm works and increases the output power under partial shading conditions. Furthermore, the algorithm becomes more efficient when the number of cells is increased.