Understanding Solar Panel Degradation in 2025

Understanding Solar Panel Degradation in 2025

In 2025, solar technology will have never been more efficient, accessible, and popular. Homeowners everywhere are choosing clean energy not just for sustainability, but for long-term savings too. But what many new solar adopters don’t realize is that solar panel degradation is a natural part of owning a solar system. Yes, even the best solar panels lose some efficiency over time.

So, what causes this loss in performance? Is it a sign of faulty panels or just part of the solar journey? And how can you make sure your panels keep performing well for decades? Let’s dive into everything you need to know about solar panel degradation in 2025—how it works, what causes it, and how to keep your system running strong for years to come.

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, all solar panels lose a bit of their efficiency—on average, around 0.4% each year for premium models. While that number might seem small, it adds up. After 25–30 years, a typical panel may lose 12–15% of its original power output.

But this doesn’t mean your panels stop working. Far from it. Most homeowners will still see solid performance even after two or three decades. And with advances in solar technology, panels today are more durable than ever.

Key Causes of Solar Panel Degradation

Not all panels degrade equally. The rate and reasons behind solar panel degradation can vary depending on materials, design, climate, and how well the system is maintained. Let’s look at the major causes in more detail.

Light-Induced Degradation (LID)

LID occurs when panels are first exposed to sunlight, causing a sudden and noticeable drop in performance, typically around 2–3%. It happens early in the panel’s life but stabilizes quickly, usually within weeks. The primary culprit behind this type of degradation is the reaction between boron and oxygen in silicon cells.

Fortunately, modern panels—especially those using N-type silicon or Gallium doping—are less vulnerable to LID. High-quality manufacturers often over-specify the power rating slightly to offset this early loss, giving homeowners peace of mind.

LeTID and UVID: The More Complex Cousins

Light and elevated temperature-induced degradation (LeTID) is like LID’s more aggressive sibling. It can cause up to 6% loss in the first year, particularly in environments with high heat and sunlight exposure. Meanwhile, UV-induced degradation (UVID) affects the panel’s surface materials, reducing light absorption.

These forms of solar panel degradation are more common in poorly manufactured or budget panels. That’s why choosing trusted brands with strong warranties is essential.

Potential-Induced Degradation (PID)

PID occurs when voltage leaks from the solar cells to the panel frame. It’s more likely in high-voltage systems and humid climates, and often creeps in unnoticed. Over time, PID can cause serious performance losses, sometimes up to 50% if left untreated.

What makes PID tricky is that it often goes undetected until it’s already done damage. But there’s good news: manufacturers today are designing panels with better resistance to PID by improving encapsulation, grounding, and even using reverse currents at night to restore balance.

Natural Ageing and Material Fatigue

Even with no major faults, panels naturally age. UV rays, rain, wind, and temperature changes wear down materials like the encapsulant and backsheet. These parts protect the solar cells from the environment. When they weaken, moisture can sneak in, corrode components, and reduce efficiency.

Discoloration of the encapsulant is one early warning sign. It doesn’t just look bad—it blocks sunlight from reaching the cells. Higher-end panels now use materials like POE or EPE instead of cheaper EVA to delay these effects.

Proper ventilation behind the panels and regular cleaning can slow down natural ageing. A little maintenance goes a long way.

Micro-Cracks and Hot Spots

Imagine tiny cracks in your solar cells that are too small to see—but big enough to cause problems. These micro-cracks can form during installation, from weather events like hail or wind, or even from someone accidentally stepping on a panel. Over time, they can lead to hot spots—localized areas where heat builds up, increasing the risk of long-term damage.

The result? Uneven current flow, lower energy production, and in some cases, fire hazards.

Newer panel designs, like half-cut and shingled cells, reduce the risk. And IBC (Interdigitated Back Contact) panels are particularly good at withstanding cracks thanks to their robust construction. If you’re shopping for solar in 2025, look for these technologies.

How to Choose Durable Panels in 2025

Choosing the right solar panel isn’t just about wattage or cost—it’s about long-term performance. If you want to reduce solar panel degradation, here are the features to prioritize:

  • Cell Type: N-type silicon is more stable than traditional P-type. It’s also resistant to LID and PID.

  • Design: HJT (heterojunction) and IBC panels lead the pack in durability and efficiency.

  • Materials: Opt for glass-glass panels and encapsulants like POE for better protection.

  • Warranty: Look for a 25–30-year performance warranty with ≤0.4% annual degradation.

Panels that meet these criteria may cost a bit more upfront, but they’ll save you more in the long run.

Tips to Extend the Lifespan of Your Solar Panels

Even the best panels need care. Think of it like taking your car in for regular oil changes. Here’s how to keep solar panel degradation at bay:

  • Clean your panels regularly. Dust, pollen, and bird droppings can block sunlight and trap heat. Just a rinse every few months helps.

  • Avoid shading. Over time, even partial shading can create hot spots. Trim nearby trees or relocate objects casting shadows.

  • Monitor temperature. Smart monitoring systems in 2025 can alert you if one panel runs hotter than the others, often a sign of a micro-crack.

  • Check your inverter size. An oversized or undersized inverter can cause voltage issues that accelerate degradation.

  • Get annual inspections. A professional with a thermal imaging camera can spot issues before they get worse.

With these small steps, you can stretch your panel’s performance well beyond its 25-year warranty.

FAQs About Solar Panel Degradation in 2025

Do all solar panels degrade at the same rate?

No. Cheaper panels may degrade faster due to lower-quality materials. Premium panels with modern cell technologies like HJT or IBC degrade more slowly, often just 0.3–0.4% per year.

How can I check if my panels are degrading too fast?

Use your solar monitoring app to track daily and monthly output. If your energy production suddenly drops, schedule a thermal inspection to rule out PID, micro-cracks, or hot spots.

Can solar panel degradation be reversed?

Unfortunately, no. But with preventive care and the right installation, the impact can be minimized.

Is solar panel degradation covered under warranty?

Yes—most manufacturers offer performance warranties that guarantee a minimum efficiency (typically 80–85%) at the 25-year mark.

Will degraded panels still produce usable power?

Absolutely. Even after 30 years, a high-quality panel will still generate plenty of energy. That’s part of what makes solar such a smart long-term investment.

Final Thoughts: Invest Smart, Maintain Well

Solar panels don’t last forever, but they last a long time. By understanding solar panel degradation and what causes it, you can make informed decisions that protect your investment.

Remember: your panels work hard every day under the sun, wind, and rain. Choosing high-quality technology, ensuring proper installation, and staying on top of maintenance are all key to making sure your system performs for decades.

In 2025, the technology will be better than ever. Take advantage of that by choosing smart, maintaining consistently, and staying educated. With the right approach, solar panel degradation becomes just another manageable part of your clean energy journey, not a roadblock.

For more tips and information, check out our solar energy latest articles on our website and start planning your next home upgrade with confidence.

Alina Rehman!

Hey, I’m Alina Rehman! I write about home improvement and insurance, making it easier for you to create a cozy space and stay covered without the confusion.