The quick and dirty on traditional PV technologies.
What does efficiency mean in a solar panel?
Solar panels manufacturers claim efficiencies ranging from 4% to over 22%. Efficiency refers to the ability to take solar energy and turn it into usable electricity. It's important to understand that a 200 watt solar panel that is 10% efficient will generate as much energy as a 200 watt solar panel that is 20% efficient. The difference is the 10% solar panel will be twice as large. Less efficient solar panels typically are less expensive than more efficient solar panels. So, if you have ample room for solar panels then using more affordable and less efficient solar panels will increase your return on investment. If ROI is your goal less efficient can be more effective.
Here are the three most common technologies:
Monocrystalline silicon cells are single wafer cells that are the most efficient in converting solar energy to electricity (15-22%). These cells tend to be more expensive. The wafer is cut from cylindrical ingots, meaning the cell will not cover a whole square area on a panel, and will end up with gaps.
Multicrystalline silicon are cut from square ingots and are cheaper to produce, however they are less efficient than their monocrystalline cousins. Multicrystalline (also known as poly crystalline) cells have a square shape allowing them to take up a whole square area on a solar panel without leaving any gaps. The typical efficiency of multicrystalline cells are 14-19%.
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