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The demand for solar photovoltaic (SPV) systems is growing all over the world due to the continuous increase in the cost of conventional means of power. India has the advantage of around 300 clear sunny days in a year. However, the biggest problem is conversion efficiency. In this paper, an attempt has been made for evaluating the second law efficiency of 160 Wp stand-alone SPV systems installed in RKGIT Ghaziabad premises. The performance of a SPV system depends on climate conditions like temperature, air velocity and a number of sunny days. The solar energy striking the solar panels gets converted into electric and thermal energy. In this work, we have considered the effect of ambient temperature and air velocity on the efficiency of solar panels. The average second law efficiency of SPV systems was found to be 10.7%, whereas maximum second law efficiency was 13.8% at 9am on the same day. The efficiency of the SPV system can be improved by maintaining the temperature of the module.