Renewable Energy
Intermediate

Panel Output After Degradation

Panel power after n years of gradual degradation.

Formula

Pn=P0(1−d)nP_n = P_0 (1 - d)^n

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Variables

P_nPower in year n
P_0Initial power
dAnnual degradation rate
nYears

Example

P_0=400 W, d=0.005, n=25: P ≈ 353 W

How it works

Solar panels usually do not lose the same number of watts each year; instead, they tend to lose a fixed percentage of their remaining output. This formula captures that compounding effect: each year’s output is the previous year’s output multiplied by (1 - d), so after n years the power is P_0(1 - d)^n. It works because repeated percentage reductions stack multiplicatively, not additively.

When to use it

Use this when estimating the long-term output of a solar panel, comparing warranties, or forecasting energy production over many years. It is especially useful in renewable-energy planning, cost analysis, and problems involving gradual efficiency loss.

Worked example, step by step

Given: P_0 = 300 W, d = 0.008, n = 20 Step 1: Substitute into the formula: P_n = P_0(1 - d)^n Step 2: P_20 = 300(1 - 0.008)^20 Step 3: P_20 = 300(0.992)^20 Step 4: (0.992)^20 ≈ 0.851 Step 5: P_20 ≈ 300 × 0.851 Step 6: P_20 ≈ 255 W Final answer: The panel’s output after 20 years is about 255 W.

Common mistakes to avoid

  • Subtracting d × n from the initial power instead of compounding the loss each year
  • Using d as a percentage without converting it to a decimal
  • Forgetting that n is measured in years and must match the degradation rate’s time scale

Did You Know?

Quality panels degrade only ~0.5% a year, still delivering over 85% of rated power after 25 years.

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Reviewed & maintained by the FormulaWon editorial teamLast reviewed September 2026