Solar panel degradation is a common phenomenon. Gradually, all the panels lose their efficiency which impacts their performance. This blog will tell you why solar panels degrade and the factors affecting its rate.
Why Do Solar Panels Degrade?
It is a process that happens due to poor quality materials and aging of solar panels. To thoroughly understand why they degrade, you have to dig deeper into factors and the degradation types.
Solar Panel Degradation Types
1. Age-Related Degradation: Such panels are exposed to varying weather conditions like hail, strong winds, heavy snow or rain, and high temperatures, thus they go through extreme wear and tear. These factors cause hardening of the crystalline silicon, cell contamination, and frame corrosion.
2. Microcraks and Hotspots: Most of the modern panels you see today consist of a series of solar cells made up of ultra-thin crystalline silicon wafers. Thus it’s very natural that these wafers are quite delicate and can fracture or crack under high mechanical stresses like large hail, extreme wind loads, or mishandling during installation.
3. Light Induced Degradation: A solar system goes through LID (Light Induced Degradation) from the time it’s installed and exposed to the sun for the first them. Due to this degradation, the photoconductivity of the panels is reduced. So, some manufacturers add UV blockers to the panels to protect them from the sun’s radiation.
4. Potential Induced Degradation: PID is induced by high voltages and it occurs when different components are operating at high voltages. This disordering causes voltage leaks and thus the amount of electricity the panels can send to the inverter is also reduced.
5. LeTID: PERC solar cell technology is used in most modern silicon crystalline solar panels. However, quite recently, the world became aware that P-type PERC cells can suffer from light and elevated temperature-induced degradation or LeTID. Also, note that Q cells were the first ones to claim anti-LeTID technology for all panels.
Also See: 16 Ways to Increase Solar Panel Efficiency
Factors Affecting Solar Panel Degradation Rate

The factors that cause PV panels to degrade are:
1. Weather: Extreme weather events like snowstorms, heat waves, and hurricanes can affect the rate of age-related degradation. Due to dramatic temperature changes, the components of your solar panel expand and contract. This causes cracks and other damage to the panels.
2. Maintenance: Although PV panels don’t demand high-level maintenance it’s still necessary to monitor them to remove any built-up dust or debris that could affect their electricity output. It’s advised to regularly check the cabling, inverters, and connection to ensure none are broken or loose.
3. Installation: To avoid any damage, it’s very essential to handle and store solar panels correctly before as well as during installation. Improper electrical connections, scratches, and micro-cracks during installation affect the panel’s performance.
It’s also extremely important for the installation to make sure that the panels are placed on the roof with optimal clamping as well as angle. This is to get the most out of mechanical resistance and self-cleaning.
4. Panel Assembly: Along with high-quality materials, the way a panel is assembled can also affect its lifespan. Incompatible components and materials could accelerate PID or LID if they have an impact on the amount of voltage leak or oxidation.
5. Panel Quality: If panel components and materials like solar cells, solar glass, and aluminum frames are of low quality, they can easily break. To reduce panel prices, some manufacturers even reduce the amount of aluminum they use in the panels. This makes thinner frames which are more vulnerable to damage.
Now, let us understand the solar panel degradation curve and what happens to panels after 25 years in the upcoming segment.
Solar Panel Degradation Curve
The degradation rate is about 0.5- 1% each year. Like any other technology, the panels will also degrade and become less efficient over time.

Also, check out the blog on Solar Panel Energy Efficiency.
What Happens to Solar Panels After 25 Years?
PV panels have a useful life of around 25 to 30 years. After these years, the solar panels won’t stop working suddenly; rather, their performance will gradually decrease.
Cross-reference: End-of-Life Solar Panels: Regulations and Management
Solar Panel Degradation Calculation
For doing panel calculations, you will need to know about the annual kWh production of your solar system.
Year | Production |
1 | 100000 kWh |
2 | 99000 kWh |
3 | 98000 kWh |
4 | 97000 kWh |
5 | 96000 kWh |
Now, you can find the rate in this manner:
2nd year degradation rate = 100* (100000-99000)/ 100000= 1%
Similarly, you can calculate the same for the remaining years.
Do Solar Panels Degrade in Storage?

No, PV panels generally do not degrade because of storage reasons. They may degrade as a result of sun exposure and regular wear and tear.
Now you know what causes solar panels to degrade. You can increase their life by using quality materials and taking good care of them. For more such informative content, keep exploring our website.
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