The discussion centers on the efficiency of photovoltaic solar panels, specifically noting that a panel with 13.1% efficiency converts photons into electric energy, while 86.9% is not converted and is lost as thermal energy. However, it is clarified that this energy isn't technically "lost" since it was never captured by the solar cells. Instead, the unconverted energy is absorbed as heat or reflected. The efficiency metric is defined as the ratio of electrical energy output to the total solar energy incident on the panel. Overall, the conversation emphasizes the distinction between energy loss and energy absorption in solar panel performance.