Solar power stands as a pivotal renewable energy source, increasingly vital in the global shift toward low-carbon energy portfolios. The precise understanding of climate conditions is imperative for optimizing solar energy production, regulation, and planning, with climate change effects playing a central role in energy output projections. This study delves into the impact of projected changes in irradiance and temperature on photovoltaic (PV) system performance in Greece. Utilizing data from five regional climate models (RCMs) under the A1B emissions scenario for future periods, the study identifies systematic errors in RCM data, necessitating bias adjustments. By estimating the projected change in PV energy output considering temperature and insolation variations, the analysis reveals a significant increase in mean annual temperature (up to 3.5°C) and mean total radiation (up to 5W/m2) by 2100. Although the performance of PV systems shows a negative linear dependence on projected temperature increases, it is outweighed by the expected rise in total radiation, resulting in up to a 4% increase in energy output. Furthermore, the study investigates the recent applications of solar PV installations in arid climates, highlighting the impact of environmental factors such as weather and dust on PV module performance. By presenting up-to-date experimental results and analyzing the effects of these parameters, the study underscores the critical importance of considering environmental conditions when implementing PV installations in such regions. Additionally, the study evaluates the impact of various environmental factors, including dust accumulation, water droplets, birds droppings, and partial shading conditions, on PV system performance. Findings reveal that shading exerts the most significant influence on PV module efficiency, with even partial shading resulting in substantial power reductions. Conversely, the impact of water droplets on PV panels leads to improved power output due to decreased panel temperature. Dust accumulation and bird fouling, on the other hand, significantly diminish power output and overall efficiency, underscoring the importance of mitigating these environmental factors for optimal PV system performance.