Understanding Solar Panel Degradation: How to Maximize Your Investment
Photo Credit : Designer
Solar panels are designed to be energy-effective and reduce carbon footprints, hence investment by many home and business owners. They deliver a clean and effective means of harnessing renewable energy, but solar panels degrade over time, like all technologies. Degradation of solar panels refers to the gradual inability of the system to efficiently generate electricity after some time from the initial installation date. The key to maximizing that solar investment is the degradation of solar panels and how to avoid or lessen its effects.
Solar panel degradation is natural due to various elements, including environmental exposure, quality in manufacturing, and maintenance practices. This degradation occurs on average between 0.5% to 0.8% annually. This means that even after it exceeds its 25-year standard warranty, the system could remain functional at around 80-85% for most solar panels. This means little in the short term; however, the cumulative effect has significantly reduced the efficiency and savings solar panels should provide over the years. In fact, in real life, performance data reported by the NREL (National Renewable Energy Laboratory) shows that modern solar panels have an average yearly degradation of 0.5%. In comparison, older panels were closer to an annual degradation rate of 1%. This supplanted technological improvement has had noticeable effects on the long-term performance of solar systems.
For example, a Phoenix, Arizona homeowner installed a 6 kW solar array in 2010 that produced 9,000 kWh annually. At the end of 10 years, because of a degradation rate of 0.5% per year, the system was still producing approximately 8,550 kWh annually. While this is minor, the homeowner enjoys considerable energy savings now compared to when they depended entirely on the grid.
Several factors contribute to the degradation of solar panels, and most of them involve environmental conditions. UV radiation, changes in temperature, and moisture may affect long-term efficiency in different ways. Solar panels operating in California or Nevada experience thermal stress in scorching summer months. This can cause the materials inside the panels, such as the silicon cells or the encapsulant protecting the semiconductor material, to degrade faster. Further, in humid areas, such as Florida, moisture can seep past the protective layers of the panels and cause certain metals in the panels to corrode, weakening their effectiveness. It has also been determined that solar panels installed in tropical regions of high humidity degrade faster than ones in dry, temperate climates.
Another factor that contributes to the overall degradation process is manufacturing quality. However, there is a difference in the quality of the materials used alongside the manufacturing; consequently, it impacts the degradation rate. This is when some low-input solar panels degrade faster due to their ordinarily low-grade silicon and protective coatings used in manufacturing rather than the premium models. In 2015, a Texas homeowner installed a budget solar array and found it degrading at 1.2% per year, notably above average for premium systems. After only five years, a system performed at 94% of the committed rating, while the nameplate rating for a higher-quality system remained at 97.5%.
Another real-world example is a commercial solar installation in a manufacturing facility in California. The system installed a 500 kW solar array in 2012 that annually produced about 850,000 kWh. The system underwent an annual degradation rate of 0.7% for the following eight years, so the production in 2020 was about 795,000 kWh per year. Although the reduction in output was noticeable, the business is still enjoying considerable savings in energy costs, and the system is providing a significant portion of its energy needs.
Fortunately, several methods can be considered to reduce the effects of degradation. Regular maintenance and monitoring are critical in ensuring your solar panels run efficiently. This will help keep their efficiency up in areas or regions with high air pollution or frequent dust storms. An example is that Arizona's homeowners and businesses may clean their systems far more often than other union states because of the everyday dust storms. This can also help in the early detection of any issues, if present, regarding the performance of the solar panel installation. Most solar inverters are designed with monitoring systems, allowing homeowner and businesses to observe the actual production of their solar panels in real-time. Any substantial decline in output can be because of certain malfunctions within the system, like shading from nearby trees to faulty inverters or pre-mature panel degradation. Early detection of such issues and their resolution would minimize their impact on the performance results of the entire system.
Proper installation is another significant factor in mitigating these effects of degradation on solar panels. Poor installation can be due to improper sealing, allowing moisture to set in, or improper mounting that makes the panels stand in the way of extra wear and tear due to wind or rain. One such example was when a homeowner in New Jersey noticed a considerable drop in the output of his solar panels only two years after installation. It was discovered that the panels had not been sealed correctly, allowing moisture into the system, which led to corrosion. After replacing the damaged panels and properly closing and sealing the system, energy production levels returned to normal.
It also makes a significant difference if one selects high-quality solar panels with lower degradation rates. Premium solar panels produced by well-recognized manufacturers usually have lower degradation rates. As a rule, they are covered by more extended warranties, which means such solar panels have guaranteed continuous work with efficient electricity production throughout the decades. For instance, an Oregon homeowner could choose a high-quality solar panel with an advertised degradation rate of 0.3% per year.
When it had been operating for ten years after installation, this system was still running at over 97% of the original capacity. This was pretty good, enabling the homeowner to maximize energy savings. Solar panel degradation is unavoidable; by understanding the reasons behind this, you could maximize the output of your solar investment. Regular maintenance, performance monitoring, proper installation, and choosing high-quality panels are all potential factors minimizing the degradation effect. With the right approach, your solar panels can continue to provide significant energy savings and environmental benefits for many years. As solar technology advances, new panels have been designed to have even lower degradation rates. Some manufacturers have started offering panels with a yearly degradation rate as low as 0.2%. This means that after 25 years, the system would operate at around 95% of its original capacity. These further changes make solar energy an increasing attraction for both homes and businesses due to their growing need to reduce the cost of energy and take care of the environment.
The degradation of solar panels refers to the natural aging process that occurs in every solar system and does not have to affect the long-term performance of your invested solar strongly. By being aware of the degradation variables that contribute to it and by taking precautionary measures that can help keep such variables to a minimum, you can only be assured that your solar panels continue to produce clean, renewable energy for decades. Solar power is considered one of the best ways to cut down energy costs and lower your carbon footprint, and with the right care and attention, your solar panels will continue serving you for years to come.
