Solar Panel Calculator
Calculate solar panel system size, number of panels, installation cost, annual savings, and payback period.
Solar Panel Calculator
Calculator
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Formula: System Size (kW) = Daily kWh / (Sun Hours × Efficiency)
Worked example — 9.48 kW system | 24 panels | $18,249 net cost | 10.1 year payback
Formula
System Size (kW) = Daily kWh / (Sun Hours × Efficiency)
Divide your daily electricity consumption (from monthly bill / rate × 12 / 365) by the product of peak sun hours and system efficiency (typically 80%) to determine the required solar system size in kilowatts. Number of panels = system wattage / panel wattage.
Worked Examples
Example 1: Average US Home Solar System
Problem:Calculate the solar system needed for a home with a $150/month electric bill at $0.13/kWh, 5 peak sun hours, 400 sq ft roof, using 400W panels.
Solution:Monthly usage = $150 / $0.13 = 1,154 kWh Daily usage = 1,154 × 12 / 365 = 37.9 kWh System size = 37.9 / (5 × 0.80) = 9.48 kW Panels needed = 9,480W / 400W = 24 panels Cost = 9,480W × $2.75 = $26,070 Net cost (after 30% ITC) = $18,249 Payback = $18,249 / $1,800 = 10.1 years
Result:9.48 kW system | 24 panels | $18,249 net cost | 10.1 year payback
Example 2: High-Sun Region Installation
Problem:Calculate for $200/month bill, $0.15/kWh, 6.5 sun hours, 500 sq ft roof, 400W panels.
Solution:Monthly usage = $200 / $0.15 = 1,333 kWh Daily usage = 1,333 × 12 / 365 = 43.84 kWh System size = 43.84 / (6.5 × 0.80) = 8.43 kW Panels = ceil(8,430W / 400W) = 22 panels Cost = 8,430W × $2.75 = $23,183 | Net after 30% ITC = $16,228 Payback = $16,228 / $2,400 = 6.8 years
Result:8.43 kW system | 22 panels | $16,228 net | 6.8 year payback
Frequently Asked Questions
How do I determine what size solar panel system I need?
The ideal solar system size depends on your electricity consumption, local sun hours, and available roof space. Start by reviewing your electricity bills to find your average monthly usage in kilowatt-hours (kWh). Divide your daily energy needs by the peak sun hours in your location and system efficiency (typically 80%) to get the required system size in kilowatts. For example, if you use 30 kWh daily and get 5 peak sun hours, you need approximately 30 / (5 × 0.80) = 7.5 kW system. Most residential systems range from 5 to 15 kW. Consider future needs like electric vehicles, which may increase your electricity consumption.
What factors affect the cost of a solar panel installation?
Solar panel installation costs depend on multiple factors. System size is the primary driver, with average installed costs around $2.50-$3.50 per watt in the US. Roof type and condition affect installation complexity — tile and slate roofs cost more than asphalt shingle. Panel efficiency and brand matter, with premium panels like SunPower costing more than standard options. Inverter choice (string vs microinverters), permitting fees, and local labor rates also influence cost. The 30% federal Investment Tax Credit (ITC) significantly reduces net cost. State and utility incentives, net metering policies, and local rebate programs can further reduce out-of-pocket expenses substantially.
What are peak sun hours and how do they vary by location?
Peak sun hours represent the number of hours per day when solar radiation averages 1,000 watts per square meter — the standard test condition for solar panels. This is not the same as total daylight hours. The southwestern US averages 6-7 peak sun hours daily, while the Pacific Northwest averages 3-4. Florida and Texas average about 5-6 hours. Seasonal variation is significant: northern states may get 5+ hours in summer but only 2-3 in winter. Peak sun hours directly determine energy production — a 7 kW system produces 35 kWh/day with 5 peak sun hours but only 21 kWh/day with 3 hours. Use NREL's PVWatts tool for precise local data.
How long does it take for solar panels to pay for themselves?
The payback period for residential solar panels typically ranges from 6 to 12 years, depending on local electricity rates, system cost, incentives, and sun exposure. In states with high electricity rates (like California, Connecticut, or Massachusetts), payback can be as short as 5-7 years. With the 30% federal tax credit and state incentives, many homeowners see payback within 8 years. After the payback period, electricity is essentially free for the remaining panel lifespan of 25-30+ years. Over 25 years, a typical system saves $30,000-$60,000 compared to utility electricity. Rising electricity rates (averaging 2-3% annually) accelerate the payback.
What is the environmental impact of switching to solar energy?
Switching to solar energy has significant positive environmental impacts. A typical residential solar system offsets 3-8 metric tons of CO₂ annually, depending on system size and local grid emissions. Over 25 years, this equals removing the emissions equivalent of driving 150,000-400,000 miles in a gasoline car. Solar panels produce no air pollutants, water pollutants, or greenhouse gases during operation. While manufacturing solar panels does have an environmental footprint, the energy payback time (time to generate the energy used in manufacturing) is only 1-3 years — meaning panels produce clean energy for 22+ more years. Solar also reduces dependence on fossil fuel extraction and associated habitat destruction.
Why does the sizing formula divide by a system efficiency factor of about 80 percent?
Modules carry a nameplate measured at standard test conditions, 1,000 watts per square meter of irradiance and a 25 degrees Celsius cell temperature, which a working roof rarely matches. The 0.80 derate bundles every loss between nameplate DC and delivered AC: inverter conversion, high-temperature output loss through a temperature coefficient near 0.3 to 0.4 percent per degree Celsius above 25, soiling, module mismatch, wiring resistance, and reflection at steep incidence angles. Omit the derate and you undersize the array by about a fifth.
How much does roof orientation and tilt change the output of the same array?
In the northern hemisphere, annual yield peaks with an azimuth near true south and a tilt roughly equal to the site latitude. Moving the same modules to a due-east or due-west roof plane typically costs on the order of 15 to 20 percent of annual energy, and a north-facing plane costs far more. Shallow tilts favour summer output and steep tilts favour winter and shed snow, while a split east-west layout trades total yield for wider morning and evening coverage.
What is the DC-to-AC ratio, and why is the array larger than the inverter?
The system size reported here is DC nameplate, the sum of module ratings at standard test conditions. Installers normally pair it with an inverter rated below that figure, giving a DC-to-AC ratio commonly between about 1.1 and 1.3. Because an array reaches full nameplate for only a handful of hours a year, the oversized DC side adds far more energy in the morning, evening, and winter than it loses to clipping, the flat-topping that happens when DC power exceeds the inverter AC limit.
Should I choose a string inverter, microinverters, or DC power optimizers?
A string inverter runs several modules in series on a single maximum power point tracker, so the weakest module in the string holds back the others, which matters when a chimney or tree shades part of the roof for hours each day. Microinverters and DC optimizers give every module its own tracking, recover that lost energy, add per-panel monitoring, and help meet module-level rapid-shutdown rules. String inverters cost less per watt and suit clean, unshaded, single-plane roofs.
How do net metering and net billing change the savings shown here?
This payback credits every generated kilowatt-hour at your full retail rate, which is precisely true only under one-for-one net metering, where exported energy runs the meter backwards at retail value. Many utilities have shifted to net billing, paying a lower avoided-cost or time-varying export rate instead. Under net billing the kilowatt-hours consumed at the moment they are produced are worth much more than exported ones, so self-consumption, load shifting, and battery storage drive the real payback.
References
Background & Theory
History
Reviewed for accuracy by Daniel Agrici, Founder & Lead Developer · Editorial policy
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