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Solar cell efficiency refers to the ratio of the power output of a solar cell to its power input while considering its surface area.

Efficiency of photovoltaic solar panels. For example a solar panel with 20 efficiency and an area of 1 m 2 will produce 200 kwh yr at standard test conditions but it can produce more when the sun is high in the sky and will produce less in cloudy conditions or when the sun is low in the sky. It is true that solar cell efficiency directly affects the solar panel efficiency. It is the portion of energy in the form of sunlight that can be converted via photovoltaics into electricity by the solar cell. High quality solar panels can exceed 22 efficiency in some cases and almost reach 23 but the majority of photovoltaic panels available are not above 20 efficiency.

The average efficiency of solar panels falls between the 17 to 19 percent efficiency range. The efficiency of the solar cells used in a photovoltaic system in combination with latitude and climate determines the annual energy output of the system.

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