The deterioration of lithium-ion batteries has been detected by an increase in the battery impedance by means of an alternating current method or a battery capacity test. These methods require an interruption of the operation because the battery has to be removed. A method estimating equivalent circuit parameters of a lithium-ion battery during operation is proposed in this article. The increase in the internal impedance has a close relation to the deterioration of the battery. The circuit is expressed by a resister and an RC parallel circuit connected in series. The parameters can be estimated by applying a convolution technique to the voltage and current fluctuation of the battery during operation. A diagnosis circuit using a microcomputer is developed using a simple algorithm employing z-transformation in the parameter estimation. The estimated parameters depend on its state of charge (SOC) and ambient temperature. The SOC dependency is solved by estimating timing, and the temperature dependency is corrected by a function derived in this article. The deterioration diagnosis of the battery can be applied to a solar power generation system, and the feasibility is discussed in this article.