Let us consider what we want to mean about efficiency. Efficiency is a measurement of the output divided by a specific factor. Once considering solar cell or panel efficiency, we are commonly looking at output per given area.

Hence a more efficient panel will either give more power or be smaller than a less efficient one. This does not mean that a more efficient panel is more economic, the fact is the reverse may be the case. More photovoltaic efficiency panels can be simpler to mount, especially when space is limited, or a tracking system is used.

There are many separate areas to consider when concerning the efficiency of pv solar panels, concerning the innate efficiency of the cells in the panel you get, the panel construction as well as how your installation may influence panel photovoltaic efficiency.

For homeowners setting up their own system, efficiency will probably be less important than the cost per nominal watt output. Researchers are continually striving to enhance the efficiency with which solar cells turn light energy to electrical energy. The record at present stands at an efficiency of around 40%, making use of multi junction cells (multiple layers of silicon), every layer tuned to trap different frequencies of light. This kind of cell will however be expensive to produce and in the past has been mainly used in space where efficiency may be more important.

Researchers also try to increase the amount of light entering the cell. Silicon is a normally shiny substance and cells are covered with non-reflective layers to make sure that as much light as possible comes in the cell. Cells used in photovoltaic panels for electricity production are generally single junction type with an efficiency of somewhere around 15%.

Solar panels have a layer of glass (protecting the cells) where the light must pass before entering cells. There is scope for lowering light reflected from the glass and also to catch light which is not striking the panel at 90o. Some research facilities on trapping light from a spacious area from various angles and aiming it onto a relatively small cell.

The two most important factors are the angle at which the panels are mounted and the amount of sunlight falling on the particular location of shade. Small parts of shade on a panel may have a considerable effect on the power generated.

The output of a solar cell as well as a solar panel is affected by its temperature. Consequently the power output will be reduced by between 0.25% (amorphous cells) and 0.5%(most crystalline cells) for each degree C of temperature rise.

Panel temperatures in the summer in hot climates can quickly reach 50oC causing a 12% reduction in output compared to the scored output at 25oC. This decrease in photovoltaic efficiency may be important to you if you have a high electricity need in the summer.

Solar panels produce less power when they are shaded and should ideally be placed where there will never be any shadows on them.

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