Solar panels represent an excellent long-term investment for Australian homes and businesses, yet their efficiency can decline. Understanding solar panel degradation is essential for maximising energy savings and ensuring sustained performance. Let’s delve into why solar panels lose power, the factors contributing to degradation, and ways to minimise efficiency loss.
If you’re considering a solar upgrade or need solar energy expert advice, Energy Matters offers trusted solutions to ensure your system delivers optimal performance for years. Contact our solar specialists today and power your future with confidence!
Understanding solar panel degradation
What is solar panel degradation? Solar panel degradation refers to the gradual decline in a solar panel’s ability to convert sunlight into electricity over time. This is an inherent characteristic of photovoltaic (PV) technology. Manufacturers typically guarantee a certain percentage of original output after 25 years, but various environmental and operational factors influence the actual rate of decline.
Why does solar lose power over time?
Several factors contribute to the decline in solar panel output over time. Understanding these reasons can help homeowners and businesses make informed decisions when investing in solar energy.
1. Natural wear and tear
Like any technology exposed to the elements, solar panels experience wear and tear over the years.
- The most common cause is the breakdown of photovoltaic (PV) cells due to prolonged exposure to UV radiation.
- Over time, microscopic cracks form, reducing the solar panel’s ability to absorb sunlight effectively.
2. Weather conditions in Australia
Australia’s harsh climate plays a significant role in solar panel degradation.
- High temperatures can cause thermal expansion and contraction, leading to microcracks in solar cells.
- Hail, storms, and strong winds can damage solar panel surfaces, affecting efficiency.
- Salt mist corrosion in coastal areas accelerates wear and tear on solar panel components.
Check out our The Impact of Climate on Solar Panel Efficiency: Australia’s Weather page for further details.
3. Manufacturing quality and material degradation
Not all solar panels are created equal. Higher-quality panels degrade at a slower rate than cheaper alternatives.
- Poor-quality protective coatings degrade faster, exposing PV cells to more damage.
- Inferior wiring and soldering can lead to efficiency losses due to increased electrical resistance.

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How much does solar panel efficiency decline?
On average, solar panels degrade at a rate of 0.5% to 1% per year. After 25 years, most panels operate at 75% to 85% of their original capacity. However, after two decades, premium solar panels with better materials and advanced technologies may retain over 90% efficiency.
How to reduce solar panel efficiency loss
While solar panel degradation is inevitable, proactive steps can reduce solar efficiency loss and extend the lifespan of your system.
1. Regular cleaning and maintenance
- Dust, dirt, bird droppings, and leaves can block sunlight and reduce solar panel efficiency.
- Routine cleaning ensures maximum sunlight absorption and prevents unnecessary output losses.
- Professional maintenance checks can detect early signs of wear and fix minor issues before they escalate.
Check out our page to learn why, when and how you should do it to clean solar panels.
2. Choosing high-quality solar panels
- Investing in Tier 1 solar panels ensures better longevity and slower degradation rates.
- Solar panels with robust anti-reflective coatings and high-temperature tolerance perform better in Australian conditions.
- Checking for reputable manufacturers with strong warranties (25+ years) provides long-term security.
For more information on selecting the right solar panels, visit our Choosing Solar Panels guide.
3. Installing solar panels with proper ventilation
- Overheating accelerates why solar loses power, so proper solar panel spacing for air circulation is essential.
- Elevated mounts and reflective coatings help reduce heat buildup, maintaining efficiency in hot weather.
4. Investing in microinverters or optimisers
- Traditional string inverters can cause power loss when one solar panel underperforms.
- Microinverters or power optimisers ensure that each solar panel operates independently, reducing the overall impact of shading or minor degradation.
Check our page for our recommended solar products.
5. Monitoring system performance
- Smart solar monitoring systems provide real-time data on panel performance.
- Detecting early signs of solar panel degradation allows timely maintenance and prevents further loss.
- Monitoring ensures that warranty claims are valid if degradation exceeds standard rates.
6. Regular electrical testing
- Have qualified electricians test the system’s electrical components. This can indicate issues that are not visually apparent.
7. Utilise PID resistant solar panels
- Select panels specifically designed to reduce potential induced degradation when possible.
The role of warranties and performance guarantees
Most solar panel manufacturers offer a performance warranty of 25 years, ensuring that solar panels maintain at least 80% of their original output. Understanding these warranties is essential for consumers looking to protect their investment. Solar panels that degrade faster than the guaranteed rate may be eligible for replacement under warranty.
When should you replace your solar panels?
While most solar panels last 25 to 30 years, replacement might be necessary if:
- Energy production drops significantly below expected levels.
- Solar panels develop severe physical damage or corrosion.
- Newer, more efficient technology becomes available, making an upgrade worthwhile.
Long-term benefits despite degradation
Despite the gradual decline in output, solar panels remain a valuable investment. The long-term benefits, including reduced electricity bills and environmental sustainability, outweigh the effects of solar panel degradation. Manufacturers’ warranties typically guarantee a substantial portion of the initial output for 25 years or more.
Understanding why solar loses power is essential for maximising the lifespan and efficiency of your solar system. By implementing proper maintenance and monitoring, you can ensure that your investment continues delivering clean, renewable energy for years.
Ready to maximise your solar investment?
Invest in quality, ensure proper maintenance, and monitor your system. Take control of your energy future. Contact Energy Matters today for solar energy expert advice and solutions to keep your solar system performing at its peak!
Energy Matters is here to guide you every step of the way. Energy Matters is one of Australia’s most trusted solar quotes due to our high customer satisfaction and industry recommendations. Our team of solar experts can help you get up to 3 FREE solar quotes from pre-qualified and vetted solar firms in your area.