Simply put, solar panel efficiency (expressed as a percentage) quantifies a solar panel’s ability to convert sunlight into electricity. Given the same amount of sunlight shining for the same duration of time on two solar panels with different efficiency ratings, the more efficient panel will produce more electricity than the less efficient panel.
In practical terms, for two solar panels of the same physical size, if one has a 21% efficiency rating and the other has a 14% efficiency rating, the 21% efficient panel will produce 50% more kilowatt hours (kWh) of electricity under the same conditions as the 14% efficient panel. Thus, maximizing energy use and bill savings is heavily reliant on having top-tier solar panel efficiency.
Many consumers and people in the solar industry consider solar panel efficiency to be the most important criterion when assessing a solar panel’s quality. While it is an important criterion, it’s not the only one to consider while you evaluate whether to install a particular solar panel. Solar panel efficiency relates to the ability of the panel to convert energy at a low cost and high supply rate.