What is the annual module degradation rate?
The Annual Degradation Rate is the performance amount that typical modules are predicted to lose as they age. Most estimates place this annual loss at between 0.5% and 1.0% per year on average. To stay within most module warranty limits, the loss factor can usually be no more than 1% per year, but that doesn’t mean that there won’t be a warranty problem for badly designed or built modules (poor materials or workmanship can cause problems with higher conductor or soldering resistance, opacity of the encapsulant, etc). One manufacturer now guarantees that their modules will not degrade more than 0.7% per year, but this is rare.
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