Solar energy has become a popular source of clean and renewable energy over the years. One of the key metrics for solar panel performance is efficiency. Understanding what efficiency is and why it’s important is crucial if you’re in the market for rooftop solar panels.
The Importance of Efficiency
Efficiency refers to how much of the sun’s available energy actually gets turned into usable energy by the solar panel. The higher the efficiency rating, the more energy you can generate from a limited space. For example, if you have a small rooftop, you may want to invest in high-efficiency panels to maximize your energy output.
According to the National Renewable Energy Laboratory (NREL), residential solar installations in 2020 used panels with efficiencies between 16% and 22%. The majority of arrays installed in 2020 used panels with efficiency ratings of 19%, which is right in the middle of that range. The highest-rated solar panels for residential customers currently have an efficiency of around 22%.
Efficiency measures how much of the sun’s available energy gets turned into usable energy.
However, exciting things are happening outside the mainstream. Panels developed by researchers at the NREL can operate at an impressive 47.1% efficiency, which is the top mark for the highest-efficiency panels in development. While these panels are not yet commercially available, they offer a glimpse into what the future of solar energy could look like.
Aside from solar panels, efficiency is also an important factor to consider when comparing inverters. Inverters are responsible for converting the direct current electricity generated by the solar panels into an alternate current that can be used by your home. Inverters typically have efficiencies in the high 90s, which means that only a small percentage of the energy is lost during the conversion process.
Considering Factors Beyond Efficiency
While high-efficiency solar panels and inverters may seem like the obvious choice, they may not always be necessary or financially feasible. High-efficiency panels are often more expensive than their lower-efficiency counterparts, so you’ll need to consider your budget when making a decision. If you have a small roof or shading issues, you may not need the most efficient panels to cover your electricity needs.
While high-efficiency panels and inverters may seem like the obvious choice, they may not always be necessary.
On the other hand, if you have a larger roof or one that’s optimally positioned to capture the sun’s rays, investing in high-efficiency panels could be worth it. Keep in mind that the difference between solar panel manufacturers can be several thousand dollars for an entire solar system, so it’s important to compare products based on efficiency and other factors to get the best value for your investment.
Another important consideration when it comes to solar panel efficiency is the impact it has on the environment. Solar panels with higher efficiency ratings can generate more energy from a limited space, which means fewer panels are needed to generate the same amount of energy. This results in less space being taken up by solar panels, which can be beneficial if you’re concerned about the visual impact of solar panels on your property.
Government Incentives
Another important consideration when it comes to solar energy is the availability of government incentives and tax credits. In many countries, including the United States, homeowners who install solar panels can qualify for tax credits and other incentives. These incentives can help offset the cost of installing solar panels, making it more financially feasible for homeowners.
Solar panels with higher efficiency ratings can generate more energy from a limited space.
In the United States, the federal solar tax credit allows homeowners to deduct 26% of the cost of installing a solar energy system from their federal taxes. This tax credit will begin to phase out in 2023, so it’s important to act fast if you’re considering installing solar panels.
Overall, the importance of efficiency when it comes to solar panels cannot be overstated.
