In this paper, an attempt is made to investigate the thermodynamic characteristics of a photovoltaic (PV) system based on exergy. A new efficiency is developed that is useful in studying the PV performance and possible improvements. Exergy analysis is applied to a PV system and its components, in order to evaluate the effect of various parameters e.g., voltage, current, area of the PV panel, fill factor and ambient temperature on exergy efficiency. Effect of solar radiation on power conversion efficiency is also evaluated.

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