A red light could mean a range of things: a temporary glitch, a false alarm (also called a nuisance trip), a utility grid hiccup, or even a software update in progress.
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It depends on the type of solar panel and its design, but most solar panels will continue working up to temperatures of around 80 degrees Celsius (180 degrees Fahrenheit). Beyond that point, there will be a sharp decrease in output as the photovoltaic effect starts to break down.
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