Solar panel degradation rate refers to the expected annual decline in a panel’s energy output over time. Most solar panels slowly produce a little less electricity each year as they age.

This decline is gradual, predictable, and built into long-term production estimates.

What Solar Panel Degradation Rate Means for Your Home

Why it matters

Solar panels are designed to last 25 years or more. However, they do not produce the exact same amount of electricity forever.

Most panels experience:

• A small performance drop in the first year

• A steady, gradual decline each year after that

For example, if a panel has a 0.5% annual degradation rate, it will produce slightly less electricity each year compared to its original output. This does not mean the system stops working — it simply means production slowly decreases over decades.

Manufacturers account for this natural aging process and provide performance warranties that guarantee a minimum output level over time.

How it affects savings

Solar panel degradation rate impacts long-term solar energy production (kWh), which affects lifetime savings.

Several factors influence degradation:

• Panel quality and manufacturing standards

• Climate conditions (heat, humidity, snow load)

• Installation quality

• Long-term maintenance

Lower degradation rates can:

• Preserve more energy production over time

• Improve long-term solar system output

• Strengthen total lifetime savings

• Support stronger solar return on investment (ROI)

Even with gradual degradation, most systems are engineered to provide decades of reliable energy production.

Where it shows up in the process

1. Consultation: Your Energy Consultant may explain how production estimates account for panel aging.

2. Proposal Review: Long-term projections factor in expected annual degradation.

3. Equipment Selection: Panel warranties specify guaranteed performance levels.

4. Monitoring: Ongoing performance tracking helps confirm production trends over time.

Where You’ll See This in Your Solar Project

During system modeling, Soligo engineers factor solar panel degradation into long-term energy projections. This ensures savings estimates remain realistic across the full lifespan of the system.

Panel manufacturers typically guarantee that panels will maintain a certain percentage of their original output after 20–25 years. Installation quality also plays a role in protecting long-term panel health and minimizing unnecessary performance loss.

Soligo selects reliable equipment and follows professional installation standards to support long-term durability and predictable performance.

Have questions about Solar Panel Degradation Rate? Speak with a Soligo Energy specialist today.