What is solar panel degradation?

Solar panel degradation is the slow fall in output as panels age, typically around 0.5% a year. That means after 25 years a panel still produces roughly 85% of its original output. Performance warranties guarantee a minimum output (often 85% to 90%) at year 25, so the gentle decline is predictable and built into payback estimates.

What degradation means in practice

A small annual drop adds up slowly, not suddenly. A system generating 4,000 kWh in year one might generate around 3,400 kWh in year 25, still a substantial output. Most savings happen well within the warranty period, and the panels keep working beyond it.

Check the performance warranty

  • Look for a 25-year performance warranty (or longer).
  • Check the guaranteed output at year 25 (often 85% to 90%).
  • A lower first-year degradation step is a sign of quality.
  • The product (defect) warranty is separate, often 12 to 25 years.

Frequently asked questions

Do solar panels stop working after 25 years?
No. 25 years is the typical warranty period, but panels keep generating at a slightly reduced output well beyond it.
How fast do panels lose output?
Around 0.5% a year for quality panels, after a slightly larger drop in the first year.

Related questions

Indicative estimates based on UK average data. Last updated 27 May 2026.

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