In simple terms, efficiency of solar cells is based on energy from sunlight that is converted into electricity through the process of photovoltaics. An efficient solar panel can generate more electricity by occupying less space. The technology is still in the process of evolution, and science tells us that there is no way to make a system with 100% efficiency. However, solar cell efficiency can improve on its current ratings.
While solar cell efficiency indicates the power output of one solar cell, module efficiency shows the efficiency of the whole solar panel. The value of module efficiency will always be less than cell efficiency due to the spacing between the individual cells that make up the solar panel. Despite this, advancements in technology are continuously improving module efficiency to get closer to the cell efficiency ratings.