Degradation rate is the rate at which solar panels lose efficiency over time. For instance, if a panel has a degradation rate of 1% per year, it will be 10% less efficient after 10 years of operation.
According to the National Renewable Energy Laboratory (NREL), the average solar panel degradation rate is around
0.8 percent. Of course, this metric largely depends on the materials and technologies used by the manufacturer and varies from 1% to 0.5%. Some premium manufacturers like Panasonic, SunPower or Q CELLS, offer degradation rates as low as 0.3%. Solar panel degradation rates are constantly improving as solar panel technology gets better over the years.