As a result of global efforts to combat the rise in global climate change and carbon dioxide emissions, there has been a substantial increase in renewable energy investment for both residential and utility power generation. Solar power facilities are estimated to be among the major contributors to global decarbonization in terms of capacity by 2050. Consequently, the majority of economically significant countries are progressively implementing utility-scale photovoltaic (U-PV) systems. Nevertheless, a major obstacle to the expansion of U-PV generation is the identification and assessment of direct current (DC) faults in the extensive array of PV panels. In order to address this obstacle, it is imperative to provide an evaluation method that can accurately and cost-effectively identify and locate potential DC faults in PV arrays. Therefore, many studies attempted to utilize thermal cameras, voltage and current sensors, power databases, and other detecting elements; however, some of these technologies provide extra hurdles in terms of the quantity and expense of the utilized hardware equipment. This work presents a sophisticated system that aims to diagnose and locate various types of PV faults, such as line-to-ground, line-to-line, inter-string, open-circuit, and partial shading events, within a PV array strings down to a module level. This study primarily depends on three crucial indicators: precise calculation of the PV array output power and current, optimal placement of a limited number of voltage sensors, and execution of specifically specified tests. The estimation of PV array power, along with selectively placed voltage sensors, minimizes the time and equipment required for fault detection and diagnosis. The feasibility of the proposed method is investigated with real field data and the PSCAD simulation platform during all possible weather conditions and array faults. The results demonstrate that the proposed approach can accurately diagnose and localize faults with only NS/2 voltage sensors, where NS is the number of PV array parallel strings.