Understanding Solar Panel Degradation and Production Guarantees

By October 23, 2024
Understanding Solar Panel Degradation and Production Guarantees

As solar technology continues to gain momentum in the renewable energy space, many homeowners are looking into long-term performance metrics to better understand the longevity and efficiency of their solar investments. One important factor is solar panel degradation, which refers to the gradual reduction in energy output over time. In this blog, we will discuss how solar panels degrade, what to expect in terms of performance, and how production guarantees provide peace of mind to homeowners.

What is Solar Panel Degradation?

Solar panel degradation refers to the slow decrease in the ability of solar panels to convert sunlight into electricity. Typically, solar panels degrade at a rate of around 0.5% to 1% per year. This means that each year, a solar panel’s power output will slightly decline due to various environmental and operational factors.

For example, if a solar panel’s degradation rate is 0.5%, after 20 years, the panel will still produce around 90% of its original capacity. However, with a higher degradation rate of 1%, the output after 20 years would be around 80%.

Causes of Solar Panel Degradation

Several factors contribute to the degradation of solar panels, including:

1. Weather Exposure: Extreme weather conditions like high heat, cold, and hail can cause wear and tear on the panels over time.

2. UV Radiation: The sun’s ultraviolet rays break down the materials in solar panels, slowly reducing their efficiency.

3. Thermal Cycling: The expansion and contraction caused by temperature fluctuations can lead to microcracks in the solar cells.

4. Humidity and Moisture: Water ingress into the solar panel system, especially in more humid regions, can contribute to internal corrosion, impacting performance.

What Does This Mean for Homeowners?

The degradation of solar panels should not discourage homeowners from investing in solar energy. Modern solar panels are designed to have a lifespan of 25 to 30 years, and even after this period, they still generate a significant amount of energy. The key is understanding the degradation rate of the panels you choose and how it impacts long-term performance.

Solar Panel Production Guarantees

To provide confidence to homeowners, most solar panel manufacturers offer production guarantees or performance warranties. These warranties ensure that your solar panels will produce a certain percentage of their original output for a specified period, typically 25 to 30 years.

Here’s what you can generally expect:

• Year 1: Most manufacturers guarantee that the solar panels will perform at or above 97-98% efficiency in the first year.

• Years 2-25: After the first year, the panels may degrade by 0.5% to 1% per year, but manufacturers typically guarantee that the panels will operate at or above 80-90% efficiency after 25 years.

For instance, a 25-year performance warranty might guarantee that the panels will produce at least 90% of their rated capacity after 10 years and no less than 80% after 25 years. This offers peace of mind, knowing that your system will deliver long-term value and consistent performance.

Factors to Consider When Evaluating Solar Panel Warranties

When reviewing solar panel warranties, it’s essential to consider both the product and performance warranties. The product warranty typically covers manufacturing defects and panel failures, while the performance warranty guarantees a specific level of energy production over time.

For example, with our 30-year solar panel warranty, we ensure that your system maintains excellent performance, with degradation rates below the industry average, ensuring you get maximum savings for years to come.

Conclusion: Investing in Reliable Solar Energy

Solar panel degradation is a normal part of the solar energy lifecycle, but with advancements in technology and robust warranties, homeowners can expect reliable performance for decades. A well-chosen solar system, combined with a solid production guarantee, ensures that even as your panels age, they will continue to provide substantial energy savings.

At The Solar Broker, we only partner with installers and manufacturers that offer industry-leading warranties, ensuring that your investment in solar energy is protected for the long haul. With customized solar proposals and a guarantee to beat competitors’ prices, we make going solar a simple and cost-effective choice.

For more information about solar energy and to explore how you can save with our competitive solar offers, contact us today or visit our website at thesolarbroker.com.