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Types of Solar Panels

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By Tamara Jude Reviewed By Sarah Wilder

Choosing the right solar panels can feel overwhelming, especially if you are new to this technology. Solar panels are a big investment, and your choice will affect not only the aesthetics of your home but also the power and financial savings provided by your new system.

Our team has spent more than 300 hours researching the solar industry. In this guide, we’ll cut through the jargon to explain how different types of solar panels work. We’ll cover variations in design, materials, efficiency ratings, and more so that you can make an informed, confident decision for your home.

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Solar Panel Basics

Committing to going solar can be easy, but navigating the installation process may feel overwhelming. Doing some research can help you better understand solar technology and decide what system to install.

Solar panels are made up of dozens of photovoltaic cells (also called PV cells) that absorb the sun’s energy and convert it into direct current (DC) electricity. Most home solar systems include an inverter, which changes the DC electricity to alternating current (AC) electricity—the kind needed to power your home. Solar batteries can store unused energy for use at night or during an outage.

Though there are many brands and styles of solar panels, there are only three main types: monocrystalline, polycrystalline, and thin-film. Monocrystalline and polycrystalline panels are used for residential installations, while thin-film panels are more common for small solar projects, such as powering an RV or shed.

Monocrystalline Solar Panels

Monocrystalline solar panels—or mono panels—are made from a single silicon crystal. These are the most common type of solar panels for residential systems because they’re the most efficient solar panels and better suited for roofs with limited space.

There are two kinds of monocrystalline panels:

• Passivated emitter and rear contact (PERC) panels: PERC panels are most commonly used for rooftop installations. They have an extra conductive layer on the backside of their PV cells to increase energy absorption. 
• Bifacial panels: Bifacial panels can absorb light on both faces and at a higher rate than PERC panels. They are typically reserved for ground-mounted systems that leave both sides of the panels exposed. Bifacial panels are also used on awnings, canopies, and highly reflective white commercial roofs.

Monocrystalline Solar Panel Design

Monocrystalline panels are mostly solid black but have some white space throughout. The black design makes them less noticeable on a rooftop.

Monocrystalline Solar Panel Materials

Monocrystalline solar cells are manufactured using the Czochralski method, in which a seed crystal of silicon is placed into a molten vat of pure silicon at a high temperature. That creates a single silicon crystal, or ingot, which is then divided into thinner wafers. Those wafers make up the solar panels.

Polycrystalline Solar Panels

Polycrystalline panels are made using earlier solar technology, so they’re more affordable than the newer monocrystalline variety. However, because the technology is older, polycrystalline panels are less efficient than their modern counterpart.

Polycrystalline Solar Panel Design

Polycrystalline panels have a blue hue that’s somewhat marbled in appearance, so you may see some variation in color and consistency among panels. Homeowners who don’t want to distract from their curb appeal should opt for monocrystalline over polycrystalline panels.

Polycrystalline Solar Panel Materials

Polycrystalline panels use silicon solar cells, the same as monocrystalline panels. The difference lies in the cooling process for polycrystalline panels, which creates multiple crystals rather than just one.

Thin-Film Solar Panels

Thin-film solar cells are less efficient than monocrystalline and polycrystalline varieties. As a result, they are more often used in large industrial solar installations in which space is not a constraint. Thin-film panels can also be a good option for small solar projects, such as powering a boat, and small commercial buildings with thin metal roofs, such as a warehouse.

Thin-Film Solar Panel Design

Thin-film panels have the sleekest appearance among the three panel types. They’re completely black, flat, and flexible in shape and size. They blend in easily on roofs, and they don’t require the scaffolding that monocrystalline and polycrystalline panels often do.

However, thin-film panels are not very efficient. You’d need many more—perhaps even enough to cover your entire rooftop—to generate enough power for a home. That means a higher overall cost and more opportunities for panel issues, failures, and degradation over time Because of all this, thin-film panels arealmost never used for residential installations.

Thin-Film Solar Panel Materials

Thin-film panels are created by placing a thin layer of a photovoltaic substance, such as copper indium gallium selenide (CIGS) or cadmium telluride (CdTe), onto a solid surface, often glass. The photovoltaic substance used in the manufacturing process determines the properties of the final product, with amorphous silicon (a-Si) panels being the most flexible.

Compare the Major Types of Solar Panels

Type of Solar Panel

Pros

Cons

Monocrystalline

• Lasts more than 25 years

• Made of the highest-grade silicon

• Requires the least amount of roof space

• More expensive than the other two panel types

• Can be slightly less efficient during cold weather

• Wastes material during production process

Polycrystalline

• Lasts more than 25 years

• Is more affordable than monocrystalline panels

• Produces less waste during the manufacturing process

• More easily affected by high temperatures

• Less efficient than monocrystalline panels

• Requires more roof space

Thin-film

• Can withstand high temperatures

• Is the least expensive panel option

• Weighs less than monocrystalline and polycrystalline panels

• Is the least efficient

• Requires the most space

• Isn’t sufficient for residential rooftop installations

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How Solar Panels Work

If you’re looking for more information about how solar panels work, the video below describes the process of how solar panels convert sunlight into electricity to power your home.

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Solar Panel Costs

When we surveyed 1,000 homeowners in August 2022, about one-fifth ranked affordability as their No. 1 priority when shopping for solar panels. So how much do the different types of solar panels cost?

Monocrystalline panels are more costly to produce because they use a single silicon crystal, whereas polycrystalline panels can be made using using leftover crystal fragments. Since production costs are lower and the manufacturing process is simpler, polycrystalline panels are much less expensive than monocrystalline panels. The cheapest type of solar panel is thin-film because of their ultra-light and thin construction.

Here’s the average price per watt for each panel type, which can give you an idea of how much solar panels will cost you. Note that you’ll need more polycrystalline panels than monocrystalline panels to power your home, and that thin-film panels should be reserved for nonresidential projects.

Average Cost Per Watt*

• Thin-film: $0.70–$1

• Polycrystalline: $0.90–$1

• Monocrystalline: $1–$1.50

*Prices sourced from contractor estimates used by Angi, as updated in December 2023.

Solar Panel Efficiency

The more electricity a solar panel can generate, the higher its efficiency rating. High-efficiency panels can generate more electricity while taking up less space, meaning you’ll need fewer panels for your home solar system. That’s why 35% of homeowners in our survey ranked efficiency as their No. 1 priority when shopping for solar panels.

Changes in sunlight throughout the day can impact your panels’ efficiency, since overcast skies will obviously reduce the amount of solar energy panels can absorb. High temperatures can also negatively affect energy efficiency. Panels build up heat throughout the day, lowering the power output by up to 30% during hot summer days.

Both monocrystalline and polycrystalline panels are suitable for most locations that receive an average amount of sunlight and have seasonal temperature fluctuations. Thin-film panels have a lower temperature coefficient than the other two panel types, meaning they lose less power as the temperature rises. This makes thin-film panels a good option for hotter climates or areas that get more annual sunlight.

While temperature changes affect all types of panels, those with high efficiency ratings account for these fluctuations and compensate for them in terms of overall power output.

Below is a breakdown of efficiency ratings and power capacity for each solar panel type.

Monocrystalline Panels

• Efficiency: Over 20%
• Power capacity: 300 watts and up

Polycrystalline Panels

• Efficiency: 15%–17%
• Power capacity: 240–300 watts

Thin-Film Panels

• Efficiency: 6%–15%
• Power capacity: No standard measure, since thin-film panels aren’t uniform in size, but generally less output than crystalline panels

Other Factors To Consider When Selecting a Panel Type

Beyond sunlight exposure and heat, the following factors can impact a solar panel’s performance and longevity.

Hail Rating

Solar panels are tested for hail impacts by dropping small steel spheres from a certain height or firing ice balls directly on panels to simulate hail.

Monocrystalline and polycrystalline panels are made of thicker materials and can therefore withstand hail hitting at speeds of up to 50 miles per hour. Thin-film solar panels are less resistant to hail because they’re more lightweight and flexible.

Hurricane Rating

The U.S. Department of Energy maintains a list of recommended specifications for solar panels in terms of their ability to withstand major storms, such as hurricanes. Panels that meet these specifications are designed with a locking or fastening mechanism to help prevent them from becoming windborne. Monocrystalline and polycrystalline panels are heavier and easier to modify with fastening devices than thin-film panels.

Our Conclusion

Monocrystalline solar panels are the best option for residential solar panel systems. Though more expensive than polycrystalline panels, monocrystalline panels perform better and last longer. This means that despite the higher cost, the increased efficiency and power output of mono panels may actually save you more money on electricity bills over time.

Polycrystalline panels are still a practical option for those who want to switch to solar but can’t afford monocrystalline panels. Keep in mind that if you are worried about aesthetics, polycrystalline panels are the most noticeable on your roof.

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We don’t recommend using thin-film panels for your residential solar system due to their low efficiency. However, they may be a good, affordable option if you want to power a shed, workshop, boat, or recreational vehicle.

Most solar panel installation companies will recommend a panel type and brand based on your home’s needs and your budget. Learn more about the solar panel companies we recommend in our guide.

FAQ About Residential Solar Power

How many solar panels are needed to run a house?

Most houses need about 30 solar panels. That estimate is based on an average energy consumption of 1,000 kilowatts per hour with 320-watt panels installed. The exact number of panels you need depends on several factors, including your average monthly energy consumption, your home’s size and available roof space, and your local climate and average sunlight.

Is it possible to run a house completely on solar power?

Yes, you can run a house completely on solar power. However, you’ll need backup generators and solar batteries that store excess energy to go completely off-grid. Off-grid systems are also larger and, thus, significantly more expensive than those tied to the power grid.

How long do monocrystalline solar panels last?

Monocrystalline solar panels can theoretically last 50 years, but they’re typically only covered under warranty for 25–30 years.  All types of solar panels lose about 0.5% of their efficiency per year due to normal wear and tear, so they won’t be as effective in later years as when they were first installed.

What are the main disadvantages to solar energy?

The main disadvantage of solar energy is that solar panels are expensive to install, with an average cost of roughly $20,000. However, solar incentives, rebates, and tax credits can significantly reduce this price, and the annual savings you’ll receive on electricity bills will eventually pay for the system and then some.

To share feedback or ask a question about this article, send a note to our Reviews team at reviews@thisoldhousereviews.com.

Fundamental 3: The different types of solar systems

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In May 2015, the public’s perception of solar power changed overnight. What happened? Billionaire Elon Musk jumped on stage in California and announced a product called the Tesla Powerwall, a sleek-looking home battery.

For people living off-grid, the concept of powering your home with a battery had been around for decades, but Musk’s gift for publicity took the concept from the off-grid fringe to the grid-connected mainstream. Overnight, solar installers were bombarded with people wanting batteries with their solar power systems.

I’ll talk about the pros and cons of adding batteries to your system later. Right now, I want to quickly go over the different types of solar systems and where batteries come into the equation.

At a high level, there are three types of solar power system:

1. On-grid solar.
2. Off-grid solar.
3. Hybrid solar.

Let’s go through each option briefly.

On-grid solar

On-grid solar is also known as:

• grid-connect solar
• grid-tie solar, and
• grid-feed solar

This is still the most common solar system by a country mile. Ninety-five per cent of solar systems in Australia are of this type.

This is a solar power system that is connected to the grid. It has no batteries connected to it.

Figure 1.6 shows the concept:

The solar panels generate direct-current (DC) electricity when light hits them.

Remember, it is the light from the sun that generates the electricity, not the heat. Heat actually reduces the panels’ efficiency, as we’ll learn a little later.

How do solar panels generate electricity from light? The light knocks electrons about in the silicon wafers that make up the panels. Those electrons are caught by tiny wires called ‘busbars’, which are laid on the silicon. This process is called the ‘photovoltaic effect’.

Online resource: How the photovoltaic effect works: solarquotes.com.au/pv

The DC power is ‘direct current’, which means it is a steady voltage and current. This voltage can be high: up to 600 V in a residential installation.

But the appliances in your home don’t use DC; they use ‘alternating current’ (AC). AC means that the current wiggles up and down 50 times a second. The reason they use AC power is that, at the advent of large-scale electricity generation, AC was much easier to generate. Why? Because all generators were made to spin. For example, a steam turbine uses steam to spin a generator. A spinning generator without any modern power electronics to smooth it naturally generates AC as it spins round.

Also, AC is much easier to put through transformers to jack up the voltage to hundreds of thousands of volts. Then the current can be efficiently transmitted long distances from power stations (or wind farms) to your local substation.

The whole developed world is set up for AC power, so we need to convert the DC solar power to AC power, which in Australia is 230 V AC, cycling at 50 times a second. That DC to AC conversion is done by the solar inverter. The solar inverter is a box of power electronics that sits on your wall. It converts solar DC to usable AC, which is fed directly into your home’s switchboard.

From the switchboard the solar power will first flow into any appliances in your home that are using power. There will always be some electricity consumption in a modern home, so whenever there is solar generation, at least some of it will flow into the house.

The on-grid solar system has two basic modes of operation, which depend on how much solar is being generated and how much electricity your home is using.

Mode 1: Surplus solar

If there is more solar energy going into your switchboard than your appliances can use at any point in time, the excess solar electricity will simply be exported to the grid.

When there is more solar than your house needs, surplus solar is exported to the grid. (Credit: Tesla Monitoring App)

When there is more solar than your house needs, surplus solar is exported to the grid. (Credit: Tesla Monitoring App)

This excess solar energy (Arrow C in Figure 1.7) flows through your meter recording how much power is flowing out. The meter counts how many kWhs go out into the grid. It keeps tally on one of the digital counters that you can scroll through on your meter’s liquid crystal display (LCD). Your electricity retailer (the company that bills you every quarter) will record this count in every billing cycle (usually every three months). If you have a ‘smart meter’, they get the number over the air. If your meter is not smart, someone comes and reads it manually. The retailer will pay you for that exported electricity.

Mode 2: Not enough solar

If, at any point in time, you are not generating enough solar energy for your appliances to use, your switchboard imports grid electricity to make up the shortfall, as shown in this animation and Figure 1.8.

When there is not enough solar to power the house, the grid tops it up. (Image Credit: Tesla Monitoring App)

When there is not enough solar to power the house, the grid tops it up. (Image Credit: Tesla Monitoring App)

The energy from the grid in Figure 1.8 flows though the meter too. The meter records how much grid energy you import so you can be charged for it.

Again, the meter cannot measure your home’s total electricity consumption (which is the sum of E and G in the diagram). It can only measure your grid imports (G). You’ll need to buy your own monitoring if you want to see what’s going on ‘behind the meter’, and I’ll show you how to do that in Step 5: A monitoring system for your solar.

The concept of ‘behind the meter’ You expect your electricity meter to know how much energy you use. Sounds obvious, right?

But generating your own electricity needs a whole new mindset. You may be surprised to learn that the meter installed by the electricity retailer doesn’t know – and can’t know – the details of what is happening with your home’s electricity.

When you have surplus solar, your meter can’t see how much electricity your home is using or how much is being generated by the solar system. It can only measure the exported solar.

For example, if you’re exporting 2 kW of surplus solar your meter doesn’t know if you’re generating 3 kW and using 1 kW, or if you’re generating 4.3 kW and using 2.3 kW. All it knows is that the difference is 2 kW.

Figure 1.9 shows the physical layout of a grid-connect system.

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