Some recent research in the area of light shelves has been focused on applying photovoltaic modules to light shelves to save building energy. However, due to the modules installed on the light shelf reflectors, most such light shelves have failed to improve both daylighting and generation efficiency. This study proposes a folding technology to improve light shelves’ daylighting and generation efficiency that uses photovoltaic modules and validates their performance using a testbed. The major obtained findings are as follows: (1) The proposed folding technology has a structure in which reflectors and photovoltaic modules fold alternately by modularizing the light shelf. The reflector and photovoltaic modules are controlled by adjusting the degree of folding. (2) Because light shelf angles for improving daylighting and generation differed depending on the application of the photovoltaic module, the optimal light shelf specifications differed. (3) Compared to previous light shelf technologies, the light shelf with folding technology and a photovoltaic module reduced energy use by 31.3% to 38.2%. This demonstrates the efficacy of the proposed system. (4) Applying a photovoltaic module can lower the indoor uniformity ratio, which means that the daylighting performance of the light shelf is degraded due to the reduction of the area occupied by the reflector.