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Solar panel efficiency is the ratio of electrical output from a module as compared to the total energy input derived from sunlight. The ratio is in percentage form and portrays the amount of energy expected from a panel when it is exposed to solar energy.

What is available today are natural sunlight units that are capable of converting between 6% and 20% of the total solar energy that they are exposed to. A module that has an efficiency level of 9% is expected to yield 9 parts for every 100 that goes through the photovoltaic cells for example.

However, that is usually not the end of the story. Those modules that have higher conversion ratios are more expensive than those with lower ones. Sometimes the difference in price can be so much that the ones that have lower ratios become more economical when you calculate the cost per watt produced.

Manufacturing costs are to blame for this situation for it is really expensive to make quality solar cells. Over the years, one of the most productive materials has been crystalline silicone. However, due to the cost of manufacture some electronic companies result to slicing the silicon rods to make a thin film which is a cheaper method but it compromises the energy conversion ratio of the module.

A large sheet of this thin-filmed module can be used to increase the surface area that is exposed to sunlight and in this manner cancel out the energy conversion ratio problem. Unfortunately this might not be an option for those with little space on their roofs to spare. Those with limited space may opt to purchase the compact, more productive kits even if they are costly.

Other times, the question may not be limitation in space but practicability. If one lives in a very cold and cloudy place one may consider installing highly efficient solar units to maximize energy conversion. If other power sources are accessible, one should compare the cost per watt and assess the period which shall elapse before the modules cover their own cost.

In remote areas where there is no hope of getting connected to the power grid, solar energy becomes a necessity not a luxury. In such places it is not a bad idea to invest in high performance modules for the cost will be spread over decades and this will even negate the cost per watt making the decision worthwhile. This is now possible since the technology exists to push the lifespan of a module up to 30 years.

For the time being however the problem still persists of how to make cheap semiconductors that can be applied in solar technology with efficiencies of around 80%. Experiments are being conducted using nanotechnology which many believe will provide those answers. Other problem areas such as current conversion and transfer are also being handled using nanotechnology. Micro-inverters have been developed for example that convert DC to AC right at the panel.

A lot of research is being carried out in facilities all over the world to produce the technology that that will solve these problems. Strides are being made everyday which if successful and commercialized they shall put sunlight energy at par with other energy options such as nuclear as far as output and cost per watt is concerned.

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