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In practice, most commercial solar panels achieve efficiencies between 15% and 22%. This discrepancy between theoretical and practical efficiency arises from various losses. One major factor is thermalization loss, which occurs when photogenerated charge carriers (electrons and holes) lose energy in the form of heat before being collected as electrical current. Additionally, there are recombination losses, where charge carriers recombine before contributing to the electric current, and reflective losses, where sunlight bounces off the surface of the cell instead of being absorbed.

Financial Incentives and Returns