In this study, field testing of multicrystalline-Si photovoltaic (PV) modules was carried out in a 760-kW(p) grid-interactive solar PV (SPV) power plant at Manesar, Haryana. This study assesses the field-level defects and their impact on PV modules after the infant stage in a hot semiarid climatic condition, which was not reported earlier in any other works. The test methodology involved insulation resistance (wet leakage current test), visual inspection, infrared imaging, and I-V measurements in the field. The safety and performance tests were carried out for a period of 1 month, and the results were analyzed in accordance with the relevant IEC standards, i.e., IEC 62446-2:2020, IEC 61215-1-1:2021, IEC 60904-1-2020, and IEC 60891-1-2021. The results indicate that out of 125 tested PV modules, 83 (66.4%) failed in the wet leakage current test, 122 (97.6%) had hotspot issues, and all the modules exhibited visual defects, such as delamination, ingression of water, moisture and dust particles, snail trail, edge sealant degradation, corrosion of PV cell metallic contacts, visible cell cracks, and burn marks, in PV cells. For the PV modules tested, an average annual power degradation of 2.46% was observed with maximum and minimum degradation of 6.15% and 1.25% per year, respectively. The failure mode and effects analysis outcomes suggest that the maximum risk level for PV modules under investigation is edge seal degradation and delamination with the highest risk priority numbers (RPNs) (RPN = 360 and 350, respectively). The results presented in this article provide new insight on various aspects such as degradation rate and safety considerations specific to similar climatic conditions and will be beneficial for all stakeholders of SPV power plants including module manufacturers.