Solar-cell efficiency refers to 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 system. For example, a solar panel with 20% efficiency and an area of 1 m2
will produce 200 kWh/yr at Standard Test Conditions if exposed to the Standard
Test Condition solar irradiance value of 1000 W/m2 for 2.74 hours a day.
Usually solar panels are exposed to sunlight for longer than this in a given
day, but the solar irradiance is less than 1000 W/m2 for most of the day.