Chapter 4 – Solar PV Fundamentals

This chapter covers the physics and engineering of solar photovoltaic systems with enough depth to understand sizing calculations and production estimates — without requiring an electrical engineering degree.


4.1 How a Solar Panel Produces Electricity

A silicon photovoltaic cell converts photons (light) into electron flow (current) via the photovoltaic effect. When photons with sufficient energy hit the silicon junction, they excite electrons across a bandgap, creating a voltage. Connect many cells in series and parallel to form a panel (also called a module).

Key quantities:

A typical residential panel: 400–440 Wp rated, ~2.0 m² area, ~22% efficiency.


4.2 Irradiance and Peak Sun Hours

Irradiance (W/m²) is the instantaneous solar power per unit area. It peaks near 1,000 W/m² at noon on a clear summer day.

Peak Sun Hours (PSH) normalizes daily solar energy to equivalent hours at 1,000 W/m²:

PSH = Daily irradiation (Wh/m²) / 1,000 (W/m²)

If a location receives 5.0 kWh/m²/day of solar energy, it has 5.0 PSH/day.

PSH depends on:

Annual PSH by City (South-Facing, 30–35° Tilt, Optimal)

City Country Annual kWh/m²/yr Avg PSH/day Jan PSH Jul PSH
Seville Spain 1,900 5.2 2.8 7.8
Nice France 1,700 4.7 2.5 7.1
Rome Italy 1,750 4.8 2.6 7.4
Madrid Spain 1,800 4.9 2.7 7.6
Barcelona Spain 1,700 4.7 2.5 7.0
Lyon France 1,500 4.1 1.9 6.5
Paris France 1,300 3.6 1.6 5.8
Brussels Belgium 1,200 3.3 1.4 5.5
Berlin Germany 1,200 3.3 1.3 5.6
Amsterdam Netherlands 1,100 3.0 1.2 5.0
London UK 1,050 2.9 1.1 4.9
Dublin Ireland 1,000 2.7 1.0 4.7
Stockholm Sweden 1,050 2.9 0.6 5.8
Helsinki Finland 950 2.6 0.3 5.5
Lisbon Portugal 1,950 5.3 3.0 7.9
Athens Greece 1,900 5.2 2.8 7.8
Bucharest Romania 1,450 4.0 1.8 6.8
Warsaw Poland 1,100 3.0 1.0 5.4
New York USA 1,400 3.8 2.5 5.5
Chicago USA 1,300 3.6 2.0 5.6
Los Angeles USA 1,950 5.3 4.2 6.5
Denver USA 1,800 4.9 3.8 6.4
Miami USA 1,900 5.2 4.2 6.1
Seattle USA 1,100 3.0 1.5 5.0
Toronto Canada 1,300 3.6 1.9 5.6
Montreal Canada 1,250 3.4 1.6 5.5
Sydney Australia 1,700 4.7 5.0 3.2
Melbourne Australia 1,500 4.1 4.5 2.5
Auckland New Zealand 1,350 3.7 4.5 2.5
Tokyo Japan 1,300 3.6 2.8 3.9
Singapore Singapore 1,550 4.2 4.1 4.3

Source: PVGIS (EU JRC), Global Solar Atlas. Values are approximate and vary with specific micro-siting.


4.3 Panel Efficiency and Temperature Derating

Panel Efficiency

Efficiency = Rated Power (Wp) / (Panel Area (m²) × 1,000 W/m²)

For a 420 Wp panel with area 1.95 m²:

Efficiency = 420 / (1.95 × 1000) = 21.5%

Monocrystalline silicon panels (dominant residential technology as of 2024) achieve 20–23% efficiency. Bifacial panels can add 5–15% in favorable conditions (light-colored roofs, elevated mounting).

Temperature Coefficient

Solar panels lose efficiency as they heat up. The typical temperature coefficient is −0.35% to −0.40% per °C above the STC temperature of 25°C.

On a hot summer day, panel temperature can reach 60–70°C (20–40°C above ambient due to solar absorption). This represents a 12–17% power reduction from rated:

Power_actual = Power_rated × [1 + TempCoeff × (T_cell − 25°C)]
            = 420 W × [1 + (−0.0038) × (65 − 25)]
            = 420 W × [1 − 0.152]
            = 356 W

Ironically, cold sunny winter days can produce more than rated power if irradiance is high.


4.4 System Losses

The rated power of your panels is never what reaches your appliances. Losses stack multiplicatively:

Loss factor Typical range Typical value
Temperature derating 5–15% 8%
Soiling (dust, bird droppings) 2–10% 5%
Shading (partial, nearby objects) 0–25% 5% (varies widely)
Wiring losses (DC + AC) 1–3% 2%
Inverter efficiency 2–5% loss 97% inverter
Mismatch (panel variation) 1–3% 2%
Total system efficiency   ~80%

The widely-used performance ratio (PR) captures all losses combined:

Annual yield (kWh) = Installed peak power (kWp) × Annual PSH × PR

With PR = 0.80 and Paris-level irradiation (1,300 kWh/m²/yr = 1,300 PSH/yr):

1 kWp system → 1,300 × 0.80 = 1,040 kWh/year

This figure — kWh per kWp per year — is called specific yield. Rough ranges:

Climate zone Specific yield (kWh/kWp/yr)
Northern Europe (UK, Benelux) 850–1,100
Central Europe (France, Germany) 1,000–1,350
Southern Europe (Spain, Italy) 1,350–1,600
US Southwest 1,400–1,700
US Northeast 1,100–1,400
Australia (most of country) 1,300–1,600

4.5 Inverter Types

The inverter converts the DC output of the panels into AC electricity your home can use.

String Inverter

All panels in series → one central inverter. Simple and cost-effective. Weakness: if one panel is shaded, the whole string output drops.

Microinverters

One inverter per panel (mounted on the roof). Each panel operates at its individual maximum power point. Advantage: shading or soiling on one panel does not affect others. Cost: 20–30% higher than string system.

DC Power Optimizers + String Inverter

Each panel has a DC optimizer that tracks its individual maximum power point; the string inverter handles the AC conversion. Intermediate cost and performance.

Hybrid Inverter

A string inverter with an integrated battery charger/controller. Handles solar input, battery charge/discharge, and grid interaction in one unit. Required for grid-tied solar + battery systems.


4.6 Roof Orientation and Tilt

The ideal orientation in the northern hemisphere is true south, at a tilt of ~30–40° from horizontal. Deviations reduce yield:

Orientation Relative yield vs. optimal
South, 30–40° 100% (reference)
South, 15° (flatter) 95%
South, 60° (steeper) 92%
SE or SW, 35° 92–95%
East or West, 35° 75–82%
North, 35° 55–65%
Flat (0°) 85–90%

East+West split: Some installers mount panels on both sides of a pitched roof. Total yield is slightly less than a pure south system, but the generation profile is broader (earlier morning and later afternoon production), which can improve self-consumption.


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