In short, a shattered solar panel may still produce electricity, but its efficiency and output will likely be compromised. Solar Panels Efficiency Issues Solar panels sometimes struggle to convert sunlight into usable energy efficiently due to various factors. These include improper installation, shading from objects, and dirt accumulation. Fortunately, there. Common solar panel defects, such as discoloration, delamination, and solar panel diode failure, often become more likely as systems age. While some defects are treatable, such as. Normal degradation is 0. 8% annually: Quality solar panels naturally lose efficiency over time, so a system producing 10,000 kWh in year one should generate around 9,950 kWh in year two – this gradual decline is expected and warranty-covered. Despite the need for a long-lasting, reliable solar installation, we still see many solar panel brands continue to race to the bottom to compete on price.