The solar panel system is slowly emerging as one of the best alternatives to traditional energy sources. With Australia’s abundant sunlight, harnessing solar power works amazingly to save on ever-increasing energy bills and add to environmental benefits. 

However, when considering solar panels, it’s essential to understand that not all solar systems are equal. Their efficiency varies and helps to know their ability to utilize available sunlight for converting into usable power.   

Yet, your solar panel may not work at its full potential due to various factors. But what are those factors, and how can you protect your system from them? 

To help you with it, we have prepared this blog on the factors that affect solar panels’ efficiency.

What is solar panel efficiency? 

Solar panel efficiency refers to the ability of a solar panel to convert sunlight into usable power. It shows the panel’s capacity to convert the energy from the sun into electrical power. 

For instance, solar panels with an efficiency of 20% can convert 20% of the sunlight it captures into usable energy for powering residential or commercial properties. So higher the amount of power output for a particular area, the higher the efficiency. 

The efficiency of solar panels is one of the crucial measures for systems performance. That’s why solar panels are now becoming more efficient. However, solar panels can lose their efficiency with time due to numerous factors.

What are the factors that affect solar panel efficiency? 

Whenever you buy PV modules from any solar company in the Sunshine Coast, efficiency and performance are the first parameters we look for. Although it can initially help choose the appropriate modules that fulfil your daily needs, it doesn’t guarantee that your system will deliver the promised output throughout.   

That’s because several other factors can affect the efficiency of solar panels. Some of them include:

Orientation and Inclination 

While installing solar panels, you must ensure the proper orientation and inclination of the PV modules. Solar panel angle and the amount of sunlight that falls on it help to determine whether it offers more or less efficiency. 

For example, North-facing PV modules will deliver the maximum efficiency and energy output. That’s due to the location of Australia in the southern hemisphere, enabling more sunlight that comes from the north. 

Therefore, it’s essential to get solar panels installed by a reliable installer who can guide you with the proper inclination and orientation of panels according to the location and climate conditions.


While solar panels require sunlight to produce electricity, high temperatures can reduce their efficiency. That’s because when the temperature rises, it creates a shift in the semiconductor. Although, this can add to a slight increase in current, causing an extensive decrease in voltage.

Moreover, a constant increase in temperature can damage the solar cells, such as causing micro-cracks in the PV modules. It will eventually shorten the lifespan of the system. 

Therefore, getting temperature coefficient systems and maintaining proper ventilation will help to maintain optimal temperature. So your solar system will perform at maximum efficiency.

Energy Conversion Efficiency 

Every solar panel is different and varies in energy output. It means solar panels don’t convert all the sunlight falling on them into energy but only a particular percentage. This power conversion rate is known as the energy conversion efficiency of the panel. 

Several factors like wavelength, temperature and reflection can affect this conversion rate. For instance, by reducing the amount of reflected light from the cells, you can cause an increase in the efficiency of the system.


Usually, Solar panel systems are prepared by connecting numerous PV modules in series, forming a string. So even partial shading on solar panels can affect the performance of the system, causing a reduction in the overall efficiency of the panels. 

In such cases, installing PV modules with bypass diodes can work amazingly. They are wired parallel to the PV cells and provide a current path during shading, allowing the string of the connected solar panel to generate power at a reduced voltage. 

Weather Conditions

Cool winds can help keep your solar panels cool and avoid too much heating, thus helping in keeping up their efficiency. On the other hand, extreme weather conditions can affect solar output and the efficiency of your solar panels. On days when it’s snowing or raining or if there is a hail storm in your area, it can become difficult for solar panels to get any sunlight, reducing their efficiency.

Colour of the solar panel

The back sheet of the solar panels plays an important role in the solar panels’ efficiency in the long run. It might seem like a small thing, but you should know that black colour absorbs more heat. Hence it can lead to increased temperature, causing a decline in the efficiency of solar panels over time. Consider getting some other colour in the solar panels, like blue instead of black.


Most manufacturers now offer solar panels with a high warranty of 15-25 years. But dust, debris, and weather conditions can hamper the system and even reduce its durability. 

Therefore regular maintenance done by experts will help you to determine any damages and issues on time. Since regular checks are part of purchase agreements, you don’t need to pay extra. Moreover, with proper cleaning, you can maintain the appropriate efficiency of the panels.

Monitoring and Operations 

Solar panels work continually in different weather conditions, increasing the chances of degradation and loss of efficiency. But by using monitoring systems and control operations, you can easily detect defects and get accurate data about solar projects’ performance remotely. This way, you can improve the overall efficiency of the system.


Increasing demand and technological developments have made solar panels more efficient than ever. But due to various factors, your system can lose its efficiency.  

We hope all the factors discussed above have given you a full understanding of what influences solar panels’ efficiency, solar panel packages, and all the factors responsible for efficiency in solar panels.