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What is energy efficiency of solar panels?

Updated: 8/19/2019
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13y ago

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There are three possible definitions for "efficiency" when talking about a solar technology.

  • The efficiency of the photovoltaic junction at converting light energy into electrical energy.
  • The filling factor of the cell and panel (multiplied with the junction efficiency to obtain an upper limit to the panel efficiency).
  • The installation efficiency, which includes the junction efficiency, the filling factor, inverter efficiency, and the light collecting efficiency.

Sometimes manufacturers only talk about the junction efficiency, because it is the highest number, but a lot of other factors come into play. Some efficiency numbers even include the changing angle of the Sun as it moves across the sky.

For comparing solar panels, usually only the junction efficiency and filling factors are considered, because the other issues are essentially technology independent, and relate to the installation and location of use.

So the panel efficiency will be the the ratio of the maximum output power to the incoming radiant energy of a standard Sun. Depending on technology, panel efficiencies may range between about 5% and 12%, when the panel is new. As panels age, their efficiency drops. At 100% efficiency, a panel 1 m2 should produce about 1000 W, at high noon when held facing the Sun.

Panel power (P, in Watts) is proportional to panel area (A, in m2), so to determine the efficiency (E, as a percentage), the equation would approximately be:

E = 100 * (P / A) / (1000 W/m2)

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