Let’s clear something up: if you’ve been using the terms “photovoltaic panels” and “solar panels” as if they’re twins, you’re not alone. But they’re not quite the same thing. Here’s the truth: all photovoltaic panels are solar panels, but not all solar panels are photovoltaic. That’s where most people get confused, and it’s exactly why we’re writing this blog.
Whether you’re a homeowner trying to cut down your electricity bill or a builder planning energy solutions for a large project, knowing the distinction helps you make smarter choices. Let’s break it down.
What Exactly Are Photovoltaic Panels?
Photovoltaic (PV) panels convert sunlight directly into electricity. They do this using semiconductor materials (usually silicon) that trigger a flow of electrons when hit by sunlight. This is known as the photovoltaic effect.
The electricity generated is in DC (direct current), which then gets converted to AC (alternating current) using an inverter – ready to power everything from your fridge to your EV charger.
- Primary Output: Electricity
- Key Components: Solar cells, tempered glass, EVA film, aluminium frame, junction box
- Best For: Homes, offices, industrial units, and EV charging setups
And What Are Solar Thermal Panels?
Solar thermal panels don’t produce electricity at all. Instead, they absorb the sun’s heat and use it to warm water or air. These systems include tubes filled with fluid (usually water or a glycol mix), which heat up and transfer warmth into your home’s water tank or heating system.
- Primary Output: Thermal energy (hot water or space heating)
- Key Components: Absorber plates, glazed casing, fluid tubes
- Best For: Hot water systems in homes, heating in colder climates
Performance & Efficiency: The Real Numbers
Here’s where it gets interesting. Thermal panels are actually more efficient when it comes to converting sunlight into usable heat. We’re talking 70% to 90% efficiency. Photovoltaic panels, on the other hand, typically run at 15% to 25% efficiency – but don’t let that fool you.
Why? Because electricity is more versatile than heat. You can use it to power almost anything, store it in batteries, or even feed it back into the grid.
| Feature | Photovoltaic Panels | Solar Thermal Panels |
| Efficiency Range | 15% – 25% | 70% – 90% |
| Lifespan | 25 – 50 years | 20 – 30 years |
| Output Type | Electricity | Heat |
| Performance in Cold | Better (low loss) | Risk of freezing |
Cost, Payback, And Incentives
A typical residential photovoltaic system (say, 3.5 kW) may cost higher and take 5 – 7 years to break even. But it can drastically reduce your power bills and even earn you money through government subsidies.
Solar thermal systems are often less costly than photovoltaic systems, and their payback period is shorter (around 2 – 4 years). But their use is limited to water and space heating.
Intersolar Tip: Choose based on your dominant energy need. If you pay more for electricity, PV makes sense. If water heating is your pain point, thermal is a quicker win.
Ideal Use Cases
Photovoltaic panels are ideal for:
- Powering entire homes and small businesses
- Charging electric vehicles
- Reducing dependence on grid electricity
- Participating in net metering schemes
Solar thermal panels are best suited for:
- Domestic hot water systems
- Space heating in cold climates
- Homes with high water usage
Some advanced setups even combine both, known as PVT (photovoltaic-thermal) systems. These are less common due to higher costs and installation complexity.
Environmental Impact
Both types of panels offer low-emission, renewable solutions. Photovoltaic panels take about three years to “pay back” their carbon footprint, thanks to their energy output over time.
Their downside? Recycling is tricky – currently, only about 10% of materials are recyclable.
Solar thermal panels, while made of simpler materials like copper and glass, also present challenges in terms of recyclability. However, these have zero operational emissions and don’t rely on rare materials.
Which One Is Right for You?
Ask yourself: What do I want from solar?
- If it’s electricity savings and energy independence, go photovoltaic.
- If it’s quick returns and hot water solutions, thermal may be the better route.
At Intersolar, we help homeowners, businesses, institutions, and even government bodies find the right fit. Our experts can conduct site assessments, factor in orientation, shade, roof size, and utility bills to recommend the most effective system.
And yes, if you want to maximise impact, you can have both.
What The Future Holds
The technology around photovoltaic panels is evolving rapidly. Bifacial panels that capture sunlight on both sides, perovskite materials offering ultra-high efficiency, and AI-driven systems that route excess electricity to water heaters or battery banks are already changing the game.
Solar thermal hasn’t evolved as quickly, but it remains a reliable, low-cost way to meet basic heating needs.
In the end, it’s not about which one is “better”. It’s about what fits your lifestyle, your budget, and your goals.
FAQs
- What is the main difference between photovoltaic panels and solar thermal panels?
Photovoltaic panels produce electricity from sunlight, while solar thermal panels use sunlight to generate heat for water or space heating.
- Can I install both photovoltaic and solar thermal panels at home?
Yes, you can combine both systems if you have the roof space and want to meet both your electricity and hot water needs sustainably.
- Which panel type is more efficient?
Solar thermal panels have a higher conversion efficiency (70–90%), but photovoltaic panels offer more flexible usage since they produce electricity.
- What lasts longer: photovoltaic or solar thermal panels?
Photovoltaic panels typically last 25 to 50 years, while solar thermal panels last around 20 to 30 years.
- Is it worth investing in photovoltaic panels?
Yes, if you aim to cut down electricity costs, gain energy independence, and leverage government incentives, photovoltaic panels are a smart investment.