A monitoring system and method for monitoring performance of individual powers sources in a distributed power source system. A monitoring module is coupled to each of the power sources, or to each string of serially connected power sources, to monitor and collect data regarding current, voltage, temperature and other environmental factors at the power source. The collected data is transmitted over a power line to a central analysis station for analysis. Data collected from each source indicates malfunction or degradation at the source. Comparison of data collected from adjacent sources filters for environmental factors impacting neighboring sources such as cloudy days for a solar panel. Comparison of data collected from the same source at different times indicates soiling or degradation of the source with time or periodic events such as a moving shade from an adjacent building.