Panel companies are only comfortable offering this guarantee because of a 2012 nrel study photovoltaic degradation rates an analytical review that found solar panels degrade about 0 5 to 3 each year barring any equipment issues.
Degradation rate of solar panels.
For monocrystalline silicon the most commonly used panel for commercial and residential pv the degradation rate is less than 0 5 for panels made before 2000 and less than 0 4 for panels made after 2000.
Though this rate of decline metric will vary depending on which panel brand you buy premium manufacturers like sunpower offer degradation rates as low as 0 3.
That s worked into their performance warranties.
To calculate the annual degradation percentage of solar panels we ll need to know the annual kwh production of the system.
With an average of 3 5 after 9 years the degradation of the 16 modules tested would translate into an annual degradation of less than 0 4 which would position aleo in the very good performers among its peers.
According to an analysis by the national renewable energy laboratory nrel some premium panel manufacturers offer degradation rates as low as 0 3 per year.
That means that a panel manufactured today should produce 92 of its original power after 20 years quite a bit higher than the 80 estimated by the 1 rule.
Solar panel degradation rates are constantly improving as solar panel technology gets better over the years and degradation rates below 1 are common throughout the industry.
So panels degrade automatically.
However a study conducted by the national renewable energy laboratory nrel shows a more accurate picture of solar panel degradation.
Degradation is defined as the loss of power produced relative to the rated power.
Degradation at a rate of 0 25 to 0 4 per year ensures that your solar power system continues to produce more than 90 of its original power production for 25 years.
That s backed up by the solar panel manufacturer s warranty which guarantees 90 production in the first ten years and 80 by year 25 or 30.
Solar panels do not go bad and very rarely are they faulty or break.
As an example let s assume the following about our solar system.
This can be measured and recorded using a photovoltaic production meter.
Solar inverters and solar batteries will need replacing within the 25 year solar panel lifespan.
On average solar panels degrade at a rate of 1 each year.
Most solar panels last 25 years with an average annual degradation rate of 50.
Properly maintaining your solar panels will help ensure they last longer.
But with degradation of 0 8 per year production drops below 90 before 15 years have passed.
