In mountainous regions, they consistently produce higher output than panels installed at low elevations. This improvement stems from several environmental factors that shift as elevation increases. The foremost cause is the less dense air at higher altitudes. When the intervening air layer thins, there is diminished interception of solar radiation. This means a higher proportion of sunlight strikes the surface, allowing them to maximize energy conversion.

A complementary benefit is the reduced thermal load found at higher elevations. Despite the need for strong sunlight, excessive heat can reduce the efficiency of solar cells. Solar panels function optimally in cooler conditions, and mountainous or high altitude regions typically offer cooler conditions, in peak sunlight periods. This temperature benefit helps prevent voltage drop and minimizes thermal degradation that occur when panels overheat.

Additionally, higher altitudes often experience reduced airborne contamination. In populated regions, particulate matter and smog can reduce light penetration. In contrast, mountainous areas tend to have crisper air quality, which allows unimpeded sunlight to strike the modules. Winter snowpacks can also bounce solar rays, a phenomenon known as surface reflectivity, which can further boost energy production if the panels are mounted to exploit reflected irradiance.

On the flip side, there are practical obstacles. Extreme climatic factors such as persistent breezes, portable power generator persistent snowpacks, and frost accumulation can make commissioning and upkeep challenging and costly. Panels must be mounted securely and designed to withstand extreme conditions. The remote locations of many high altitude sites can also elevate installation budgets.

Even with these limitations, the positive energy return often offsets the higher costs. For large scale solar farms or remote off grid systems, placing panels at higher elevations can significantly improve energy yield. As equipment evolves and deployment techniques grow more flexible, the trend toward utilizing high altitude locations is expected to expand, especially in areas featuring both high irradiance and elevation.