Impact of PV module degradation on inverter clipping losses

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Authors:
Jozef Rusnak, Branislav Schnierer

Presented at 2025 European PVPMC workshop in Ayia Napa, Cyprus

29 October 2025

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Overview

In the PV industry, it is standard practice to perform detailed energy yield simulations for the first year of a power plant's operation. However, as PV modules age, their performance naturally declines - a process known as degradation. Recent research by Solargis, presented at the European PVPMC workshop, highlights how this long-term degradation influences inverter clipping losses (CLs) and overall energy yield predictions over a typical project lifetime.

Methodology

To understand the interaction between aging and power limitation, we analyzed several sites using DC/AC ratios of 1.25 and 1.50. To capture the nuance of solar variability, the simulations utilized two types of satellite-based data: Typical Meteorological Year (TMY) and Multi-year Time Series (TS). These were processed at both 15-minute time steps and 1-minute time steps to evaluate the impact of temporal resolution on the results.

Degradation was modeled as 0.8% at the end of the first year and 0.5% for each subsequent year. The research compared three calculation methods:

  1. Full TS simulation: Degradation applied directly to each step of a 20+ year sub-hourly time series.

  2. TMY repetition: Repeating a single TMY year for the project lifetime with degradation applied annually.

  3. Post-processing: Applying a linear degradation factor to the Long-Term Average (LTA) yield - the current industry standard.

Key research findings

The study revealed that the relationship between degradation and energy loss is not as straightforward as once thought.

Non-linear Reduction of Clipping

While PV module degradation is linear, the resulting decrease in clipping losses is non-linear. As the modules degrade, the DC array effectively "shrinks" relative to the inverter capacity. This causes clipping losses to drop significantly faster in the early years of a project than in the later years.

The Role of Temporal Resolution

The research found that using a 15-minute time step (or hourly data) often underestimates clipping losses compared to a 1-minute time step. This is because high-frequency fluctuations in irradiance are smoothed out in lower-resolution data, even though they would have triggered an inverter's power limitation in reality.

Figure 1: CLs throughout expected plant lifetime with different input data and different DC/AC ratios. Note the differences between the flat profile of TMY-based analysis and variable profile of TS-based analysis.

Why standard industry practice may be inaccurate

Many practitioners use a "post-processing" approach: they calculate the first-year yield and then subtract a flat annual degradation percentage (e.g. -0.5% per year) for the rest of the project life.

By simply subtracting a flat degradation percentage from a first-year simulation, designers fail to account for the fact that a degrading system actually "reclaims" some energy that would have otherwise been clipped. Failing to model this interaction can lead to an overestimation of future yield losses - and an underestimation of actual energy production - by as much as 3.6%.

Recommendations for PV professionals

To ensure the highest accuracy in financial and technical assessments, Solargis recommends the following:

  • Use sub-hourly data: Utilize data with 15-minute or 1-minute time step for clipping analysis.

  • Integrate degradation: Run simulations that incorporate degradation directly into the simulation chain, calculating is specifically for each day of the analyzed period.

  • Site-specific analysis: Avoid global assumptions, as the impact varies based on local climate and DC/AC ratios.