Managing Solar Panel Degradation: What to Do When Your Photovoltaic System Reaches Midlife - Understand how solar panel degradation affects system lifespan and performance. Learn your options when panels reach midlife—before full end-of-life decisions.
The U.S. solar panel market has grown dramatically, surpassing 5 million installations—a fivefold increase since 2016. As adoption continues to rise, a new reality is setting in: many of these systems are now approaching midlife. With more photovoltaic (PV) systems entering this critical stage, managing solar panel degradation is becoming essential for asset owners and operators alike.
At midlife, solar installations aren't necessarily failing—but they are changing. Components begin to degrade, performance decreases, and owners are faced with decisions that could impact the entire system’s lifespan and financial value.
This article explores the key concerns owners face as their solar panels age, the impact of degradation on performance, and the real-world strategies available to extend the useful life of these valuable renewable energy assets.
Solar panels are built to be durable—most come with warranties lasting 25 years or more. But even the best PV modules degrade over time. According to the National Renewable Energy Laboratory (NREL), average solar panel degradation rates are around 0.5% per year, though that number can vary based on location, panel type, and maintenance practices.
While degradation doesn’t mean immediate failure, it does signal a slow reduction in energy output. The result? Lower returns, rising maintenance costs, and tough decisions about what comes next.
Degradation in solar panels is a natural, expected process that occurs over time as materials are exposed to the elements. But the science behind degradation is complex — and understanding it helps owners make better decisions about maintenance, repowering, or end-of-life planning.
1. Light-Induced Degradation (LID)This typically occurs in the first few hours or days after PV modules are exposed to sunlight. As sunlight interacts with the silicon in solar cells, it causes minor structural changes that can reduce efficiency by 1–3%. It’s normal and factored into performance ratings.
2. Potential-Induced Degradation (PID)PID results from voltage stress between different components of the PV system, especially when modules are grounded improperly or exposed to extreme humidity. It can cause leakage currents and result in sudden performance losses across the entire array.
3. Thermal Cycling and Humidity FreezeDaily temperature swings cause solar panel materials to expand and contract. Over time, this creates microcracks in the silicon wafers and solder joints. In colder climates, trapped moisture can freeze and expand within these cracks, accelerating mechanical breakdown.
4. Delamination and Hot SpotsAs panels age, layers within the PV module can begin to separate — a process known as delamination. This can lead to moisture ingress and localized heating, called “hot spots,” where solar cells are damaged and energy production declines sharply.
5. UV Exposure and Encapsulant DiscolorationLong-term exposure to sunlight breaks down the encapsulant layer that protects the solar cells. This often results in yellowing or browning, reducing light transmission and diminishing the module’s energy output.
Degradation isn’t limited to the panels themselves. Inverters, wiring, and racking systems also degrade, especially when exposed to heat, humidity, or poor ventilation. A failing inverter can undercut the entire system’s performance — even if the solar panels are still functional.
Understanding these degradation modes allows owners to identify issues early, estimate true system lifespan, and avoid unnecessary replacements by focusing on targeted interventions.
Many owners facing solar panel midlife are unsure how to proceed. They know their installation is no longer new—but it’s not quite obsolete either. Here are some of the most frequent questions we hear:
As solar panels age, their output drops while maintenance and repair costs increase. Owners are often unsure whether to invest more into a system with declining performance or move on altogether.
Many owners don’t know what to do with degraded solar panels or how to responsibly manage end-of-life systems. With few established recycling programs, modules often sit idle, wasting both energy and rooftop space.
Without a clear roadmap for what to do when a PV system enters midlife, owners are left to guess. Should they reinvest? Donate? Seek help? The lack of consistent, expert guidance creates paralysis—and lost value.
It’s time to rethink how we handle aging solar panel assets. Rather than rushing toward end-of-life, owners can extend their system’s useful life with the right strategies—saving money, boosting performance, and benefiting the environment.
At Do Good Energy, we specialize in turning underperforming solar panel assets into productive clean energy systems again—without the hassle.
Here’s how we help:
A commercial property owner was stuck with an aging solar panel array that had become a liability. Installed over a decade ago, the system’s output had dropped, maintenance needs had grown, and the owner felt trapped by a failing investment.
Do Good Energy stepped in:
The result? The system now delivers clean, cost-saving solar energy to tenants, and the owner is free from operational headaches—without needing to rebuild from scratch.
Solar panels don’t last forever, but their midlife doesn’t have to mean decline. With the right strategy, aging systems can continue to generate value for years to come.
If your PV system is entering its second decade, now is the time to assess your options.
At Do Good Energy, we help solar owners make smart decisions—whether that means selling, donating, or repowering. Our mission is simple: extend the useful life of solar infrastructure, reduce waste, and ensure your investment in renewable energy pays off long after the warranty ends.
Let’s make midlife your project’s most productive phase yet.Contact us today to explore your options.