ABSTRACTLightweight photovoltaic applications are essential for diversifying the solar energy supply. This opens up vast new scenarios for solar modules and significantly boosts the capacity of renewable energy. To ensure high efficiency and stability of the solar modules, several challenges need to be overcome. Degradation due to elevated temperature and/or humidity is a critical concern for silicon heterojunction (SHJ) solar modules. Here, we investigated the stability and degradation mechanism of encapsulated cells with lightweight configurations where the cells are based on three different types of transparent‐conductive oxide (TCO): indium tin oxide (ITO), aluminum‐doped zinc oxide (AZO), and a combination of ITO/AZO/ITO under humid and thermal environmental conditions. A damp heat (DH) test at a temperature of 85°C and relative humidity (RH) of 85% was performed on lightweight modules for 1000 h. Our results show that AZO is the most susceptible to DH degradation. The AZO film was damaged by the combined effects of moisture ingress and delamination of the interconnection foil, resulting in a decrease in the conductivity of the AZO film, leading to a dramatic increase in Rs and a decrease in FF of the modules. Consequently, moisture has a greater chance of percolating through the damaged AZO layer into the a‐Si:H passivation layer, causing passivation degradation, which leads to an increase in recombination, resulting in a decrease in Voc of the modules. In particular, after capping the AZO film with an ITO film, the efficiency loss of the ITO/AZO/ITO module was significantly reduced. This suggests that the ITO film could be a promising protective capping layer for the AZO‐based solar cells.