Degradation-Adjusted Production
Solar energy production estimates that account for the gradual decline in panel output over time, typically modeled at 0.3-0.5% per year from the first-year baseline.
Why It Matters
A 25-year financial model should use degradation-adjusted production, not fixed year-one numbers. Ignoring degradation overstates lifetime savings by 6-10%.
Related Tools
Related Terms
Annual Degradation
The gradual decline in solar panel output over time, typically 0.3-0.5% per year for modern panels. After 25 years, panels still produce 87-92% of their original rated power.
Degradation Rate
The annual decrease in solar panel efficiency. Modern panels typically degrade 0.3-0.5% per year.
Production Guarantee
A written guarantee from a solar installer specifying the minimum kWh of electricity the system will produce annually. If actual production falls short, the installer compensates the difference.