If you’re shopping for solar panels for your home, you might assume that higher efficiency equals a better investment. While efficiency is important, it’s not the only factor to consider—and in many cases, it’s not even the most important one.
High-efficiency panels often come at a premium price, and that extra cost doesn’t always translate to better value. What really matters is the affordability of the energy your system produces over time and the longevity of your solar panels.
What Is Solar Panel Efficiency?
Solar panel efficiency refers to how much sunlight a panel can convert into usable electricity under ideal conditions. In theory, higher efficiency sounds great—you get more energy from the same amount of sunlight. But in practice, the cost of ultra-efficient panels can be significantly higher than standard options, without offering enough extra savings to justify the price.
That’s why we recommend focusing on the overall cost of your system and how much energy it will generate over time, rather than just efficiency. A slightly larger system with lower-cost panels can often provide better value than a smaller, high-efficiency system at a premium price.
What Is the Typical Efficiency of Solar Panels Today?
Most solar panels on the market today have efficiencies between 20% and 22%. Some premium models push beyond 22%, but they come with a higher price tag that may not be worth it for most homeowners.
Standard panels in the 20-21% efficiency range still produce plenty of energy and are often a better financial choice, especially if you have ample roof space. The difference in real-world performance between a 20% and a 22% efficient panel is small—but the price difference can be significant.
Which Solar Panels Provide the Best Long-Term Value?
Solar is a long-term investment, and the goal is to get the best return over 25+ years. Instead of focusing too much on efficiency, here’s what really matters:
- Warranty & Reliability: A great warranty is only useful if the company is still around to honor it. Established brands like REC offer low degradation rates and industry-leading warranties, which we often recommend.
- Degradation Rate: Over time, all solar panels lose efficiency. Panels with lower degradation rates will produce more power over their lifetime, leading to better long-term savings.
- Manufacturer Stability: Newer solar manufacturers may offer flashy specs, but if they go out of business in a few years, your warranty won’t mean much. Choosing a company with a proven track record is key.
The Bottom Line
Efficiency is just one piece of the puzzle. While it’s tempting to focus on getting the “best” panel, the best investment is one that balances cost, quality, and long-term performance. By prioritizing system size, overall value, and the reputation of the panel manufacturer, you’ll get a solar system that maximizes savings for years to come.
