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At the heart of solar panel efficiency is the Shockley-Queisser limit, which is a critical formula that defines the maximum theoretical efficiency for a single-junction solar cell. According to this principle, the maximum efficiency under standard test conditions (approximately 1000 W/m² solar irradiance and a temperature of 25°C) can reach around 33.7%. This limit arises from several factors, including the bandgap energy of the semiconductor material used in the solar cells, which determines how effectively the material can absorb sunlight.

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Another critical aspect determined by panel dimensions is the orientation and angle at which they are installed. For maximum energy efficiency, solar panels should be angled towards the sun's trajectory, which can vary depending on geographic location and season. Adapting the installation angle to the dimensions of the panels is essential to optimize sunlight absorption.