Solar Panel Update: SolarCity Reports Solar Power Systems Last 35 Years Minimum, Metric Focus On Degradation Key

SolarCity reported that solar power systems will last 35 years. It is 40 percent more than what the market was initially expecting.

SolarCity's primary finding is that the annual efficacy loss or power degradation of solar panels supplied is greater than 35 percent. It is lower compared to the industry-wide selection of non-SolarCity panels, SolarCity reported. The latter is expected to be of use for a period of 25 years only.

SolarCity is one of the biggest distributors of solar panels arising from many different manufacturers across the world. They have thousands of systems interconnected to a core database to monitor the performance of the panels through real-time monitoring, Sun Power reported.

The report conducted by the SolarCity viewed more than 11,000 solar panels to distinguish their exact data points. Through the sample population, they arrived to a conclusion that the solar panels are performing greater than expected.

The key metric focuses on degradation, where panels lose electrical production per year due to numerous factors such as water vapors trapped inside the panels, materials broken down by sunlight, and the various rise and fall of everyday temperatures.

The Power Production Warranty, standard efficient solar panels put out by Tier 1 suppliers, are provided to lose not more than 0.7 percent yearly efficiency for the first 25 years. SolarCity states that they have offered the first 25 year power warranty since 1997 and this has become the standard.

SunPower, a superior manufacturer of solar panels, have warranted their panel to be 0.5 percent efficacy lost. An independent study suggests that SunPower panels are degraded at a slower rate of 0.25 percent yearly. At that rate, the SunPower panels has over 50 years before it is degraded. The current market price for SunPower solar panel in bulk is about $1.30 per watt, while standard Tier 1 panels are priced at about $0.65 per watt. It means that it is 50 percent of the cost.

The SolarCity claims that the findings of the report are due to the implementation of a Total Quality Program.