Global transition towards sustainable energy sources demands a holistic assessment of how external parameters influence the efficiency of solar power systems. Of these, temperature is important as it influences the overall performance of solar panels. Thus, understanding the impact of temperature on solar system efficiency is vital for maximizing the performance and output of solar energy systems. Solar panels are most efficient in moderate temperatures, but their efficiency can drop significantly in hot or cold environments. However, there are certain ways through which you can keep a check on your Solar Power Panel Efficiency. 

Factors That Affect Solar Panel Efficiency:

solar system efficiency

A variety of factors can impact solar performance and efficiency, including:

Temperature: It is worth noting that changes in the temperature directly impact solar PV efficiency. Solar panels operate best at ambient temperature i.e. around 77 degrees Fahrenheit (25 degrees Celsius). Higher temperatures reduce the efficiency of solar panels. This is because semiconductor material, which is usually sensitized to heat, is used for making solar cells.

Sunlight: Solar panels efficiency is also influenced by how much sunshine they get. Solar energy systems are most productive when they receive direct sun rays, however, they are also capable of producing energy in indirect sunlight or on cloudy days.

Orientation and Tilt: Solar system efficiency is also influenced by their orientation and tilt. In northern hemispheric countries like India solar panels should face south, and be at the same angle as the latitude of the installation site. This would ensure panels get as much sunlight as possible.

Dust, Snow, and Debris: Dust, snow, or debris can significantly reduce solar panel efficiency. Cleaning and regular maintenance of solar panels are crucial in ensuring the proper operation of solar panels.

Panel Age: The solar power panel efficiency keeps degrading gradually with each passing year. However, the degradation rate is very slow, and good solar panels are expected to last for at least 25-30 years.

Shading: Solar power systems can also lose efficiency due to shading. Thus it is recommended not to allow such things as trees, buildings, or any other object to shade solar panels.

How Temperature Affects Solar PV Efficiency:

A solar panel system is primarily made of semiconductor material. Due to higher temperatures, the electrons of the semiconductor material move more, and hence, it leads to higher power losses. On the contrary, the conductivity of the materials decreases in colder temperatures, which results in an improved performance. A solar panel has a temperature coefficient that shows its reduction in efficiency per degree centigrade rise. It usually ranges from -0.2%/°C to -0.5%/°C. Therefore, it can be concluded that for every one degree Celsius rise and increase in the temperature, the solar system efficiency reduces between 0.2% to 0.5% as well.

Mitigating the Effects of Temperature on Solar Panel Efficiency:

Several things can be done to mitigate the effects of temperature on solar panel efficiency, including:

Choosing the right solar panels: One can find different kinds of solar panels in the market with some being much more capable of tolerating high temperatures. While selecting solar panels, however, one must take into account the temperature coefficient plus the climate that characterizes the installation area.

Installing solar panels in a cold location: It is important to install solar panels in a cold area free of direct heat exposure from asphalt or concrete. However, if it is possible, then, solar panels should be mounted on a north-facing roof or at least beneath a heat shade structure.

Using solar panel cooling systems: There are several solar panel cooling systems in the market today. These technologies facilitate the cooling of the solar panels and eventually improve the energy yield per m².

Comparing Solar Efficiency in Hot and Cold Environments:

In hot regions, solar panels are typically less efficient than in places with colder temperatures. The temperature coefficient of solar panels is normally a negatively signed number, meaning that they become less efficient as the ambient temperature rises.

For example, if a solar panel has a temperature coefficient of -0.4% per degree Celsius, its efficiency will be 4% lower in a hot environment with a temperature of 40 degrees Celsius than in a cold environment with a temperature of 20 degrees Celsius.

Freyr Energy's Customized Approach to Temperature Challenges:

While several companies are selling and installing solar panels, Freyr Energy is the best solar panel Company in India. Freyr Energy is aware of the major problem with thermal efficiency declines in solar systems and attempts to reduce it through its unique design.

Innovative Panel Technologies:

Freyr Energy provides different cutting-edge solar technology panels, which can endure the heat and ensure optimal performance. For instance, Freyr Energy has some solar panels with a system that reduces the panel temperatures and enhances efficiency.

Customized System Design:

A good thing to note about Freyr Energy is a dedicated workforce of professional solar engineers who design made-to-order, customer-oriented photovoltaic installations for maximum efficiency and power production to satisfy users’ expectations. This involves factors such as choosing weather conditions for installation and precautions taken toward temperature sensitivity in solar cells.

Heat Tolerance and Longevity

Even under extreme conditions, Freyr Energy’s solar panels can endure. We provide the longest warranties available for solar panels and it is for 25 years.

Cold Climate Adaptability:

Solar panels of Freyr Energy are also suitable in cold climates. Freyr’s solar arrays are designed to withstand cold climates.

Smart solutions and Sunpro+ app in smart maintenance:

Sunpro+ mobile application and integration of smarter maintenance technologies make it possible to monitor performance in real-time and to intervene quickly if required so that efficiency is maintained irrespective of temperature fluctuations.


Freyr Energy stands at the forefront of the solar energy sector by addressing the critical issue of temperature-induced efficiency drops in solar systems. Their innovative technologies and tailor-made approaches are an indication that we are dedicated to handling problems resulting from heat and turning solar energy into a stable source of renewable energy.


Most frequent questions and answers

Yes, degradation reduces the efficiency of solar panels over time. This is a natural outcome of being exposed to UV rays and harsh weather. The National Renewable Energy Laboratory estimates a 0.5% to 0.8% annual degradation.

The energy loss due to electron movement becomes higher as the temperatures increase, thus leading to lower efficiency at higher temperatures. On the other hand, lower temperatures can improve their efficiency through better material conductivity. In extreme temperatures, photovoltaic panels work less efficiently.

The efficiency of a solar panel is defined as the percentage of the sun’s energy that is converted into usable electricity by that panel. The efficiency of a panel is calculated by dividing its total power output (Watts) by the square meter of its total area and then dividing that figure by the STC irradiance value of 1000 W/sq.m. The outcome is then multiplied by 100 to yield the percentage number.

Go Solar & Reduce Your Electricity Bill

Contact us today! Our support team will happy to help you.