It is said that PV power generation systems have a long lifespan compared to other renewable energy sources and require little maintenance. However, there are cases where the performance expected during initial design is not achieved due to shading, temperature rise, mismatch, contamination/deterioration of PV modules, failure of inverter, leakage current, and arc generation. Therefore, in order to solve the problems of these systems, the power generation amount and operation status are investigated qualitatively, or the performance is comparatively analyzed based on the performance ratio (PR), which is the performance index of the solar power generation system. However, because it includes large losses, it is difficult to accurately determine whether there are any abnormalities such as performance degradation, failure, or defects in the PV power generation system using only the performance coefficient. In this paper, we studied a status diagnosis algorithm for shading, inverter failure, leakage, and arcing of PV modules to optimize the power generation of PV power generation systems according to changes in the surrounding environment. In addition, using the studied algorithm, we examined the results of an empirical test on condition diagnosis for each area and the resulting optimized operation of power generation.