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The higher the efficiency, the more energy a panel can generate for the same amount of sunlight. Several factors affect this efficiency, including: For contractors, developers, and engineers, understanding the core efficiency of solar panels is key when designing. . Solar-cell efficiency is the portion of energy in the form of sunlight that can be converted via photovoltaics into electricity by the solar cell. The efficiency of the solar cells used in a photovoltaic system, in combination with latitude and climate, determines the annual energy output of the. . The conversion efficiency of a photovoltaic (PV) cell, or solar cell, is the percentage of the solar energy shining on a PV device that is converted into usable electricity. Even small decisions during planning can make a noticeable difference in output over the years.