What is the temperature coefficient of solar panels, and why does it matter?

The temperature coefficient indicates how much a solar panel’s power output decreases as its temperature rises. It is typically expressed as a percentage per degree Celsius (%/°C).

A lower (less negative) value means better performance in high temperatures. For example, -0.3%/°C performs better than -0.5%/°C, as it results in less power loss under heat. This makes panels with lower temperature coefficients more suitable for warm and tropical climates.