The invention provides a method and system for monitoring array performance and identifying faults of a photovoltaic assembly. The system includes a data aggregation and storage unit, a photovoltaic array performance recession monitoring unit and a photovoltaic assembly fault identifying and positioning unit. The method includes the following steps: S1. acquiring operation condition parameters and operation performance parameters of the photovoltaic array assembly, the operation condition parameters including environment temperature and radiation illumination, the operation performance parameters include assembly working temperature, working current and voltage; S2. real-time monitoring performance recession of the photovoltaic array assembly; S3. establishing a fault identification knowledge database, and realizing fault identification and positioning of the photovoltaic array assembly. According to the invention, the method and system, through wireless signal acquisition, transmission and data analysis, can realize real-time monitoring of performance recession state of the photovoltaic assembly, and determine fault types and fault positions through fault identification, and provide support for remote intelligent operation and maintenance of a solar power station system.