5KW Solar Power System – Costs, Savings, Payback. 5 kilowatt solar system

# 5KW Solar Power System – Costs, Savings, Payback. 5 kilowatt solar system

## How much does a 5kw solar system produce?

The 5kW (5000 Watts) rating on a solar system means that, provided enough direct sunlight, the system could potentially produce 5000 Watts of power. But the actual amount of power that a system of this size produces is not constant and will fluctuate throughout the day.

For example, in the morning, around 8 am, a 5kW system might only produce about 300-500 Watts of power, but at noon, the system might actually produce 4000-5000 Watts.

However, that is Electrical Power in Watts (W) or kiloWatts (kW), and what really matters at the end of the day, and what utility companies charge for, is Electrical Energy in Watt-hours (Wh) or kiloWatt-hours (kWh).

In this article, I discuss the daily, monthly, and annual energy production of solar systems rated at 5kW, the factors that influence this energy production, and how you can estimate the amount of energy that a 5kW is capable of producing for you.

After reading this article, you’ll have an idea of what to expect from a 5kW solar system if you do decide to install one.

## How much energy does a 5kw solar system produce?

The actual amount of energy that a 5kW solar system produces will depend on the amount of sunlight it receives, which itself depends on a few factors such as system location, the elevation of the solar panels (tilt angle), the direction the system is facing (heading), and of course, weather.

However, throughout the year, and as a rule of thumb, a 5kW solar system would – on average – produce around 20 kWh of energy per day. This translates to about 600 kWh per month, and around 7500 kWh of energy per year.

In the summer, when direct sunlight is generally abundant, a 5kW system could produce up to 35 kWh of energy in a single day. In the winter, however, the system might only produce 5 kWh of energy per day.

Here’s a table that compares the average monthly and daily energy production of a 5kW solar system in the months of June and December, in 12 different cities around the U.S.:

### Step 2: Provide system information

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For example, let’s say that in your location, a 5kW would at least produce 15 kWh of energy per day, aside from extremely cloudy days. That amount of energy could run:

• A refrigerator (around 1500Wh or 1.5 kWh of energy consumption in 24 hours of run time)
• A 32″ LED TV for 6 hours (around 300 Wh or 0.3 kWh of energy consumption in 6 hours)
• 3 Laptop computers for 8 hours (around 1500 Wh or 1.5 kWh of energy consumption in 8 hours)
• 5 LED light bulbs for 8 hours (around 600 Wh or 0.6 kWh of energy consumption in 8 hours)
• A 24000 BTU (2 tons) air conditioner for 6 hours (around 9000 Wh or 9 kWh of energy consumption in 6 hours)

This is just to give you an idea.

To actually determine if a 5kW solar system is enough to run your appliances, you’ll have to list all of the appliances that you use on a typical day, their power usage (in Watts), and the amount of usage time for each appliance.

You’ll then be able to determine the daily energy usage of each appliance by multiplying the power usage (Watts) of the appliance by the amount of usage time (hours):

Daily Energy Consumption of Appliance 1 (in Watt-hours) = Power Rating of Appliance 1 (Watts) x Time (hours)

It is worth noting that even though refrigerators are left on 24 hours a day, they only really run for 1 third of that time (8 hours). So if you have refrigerators listed in your appliance, use 8 hours as their daily run time.

After you calculate the daily energy usage of each appliance, sum everything up to determine your daily energy usage:

Daily Energy Consumption (in Watt-hours) = Daily Energy Consumption of Appliance 1 Daily Energy Consumption of Appliance 2 Daily Energy Consumption of Appliance 3 …

Doing this will allow you to quantify your daily energy consumption, which you can then compare to the energy production estimates of the 5kW in your location. If you’re planning on going off-grid, this is necessary.

But don’t worry, there’s an easier way to do this. You can easily determine your daily energy consumption by using our Energy consumption calculator.

The calculator allows you to list all of your appliances, their power usage, and their usage duration and then calculates the energy consumption of each appliance to determine your total energy consumption.

## How many solar panels do I need for a 5kw system?

You would need anywhere between 14 and 25 solar panels to make up a 5kW (5000W) solar system. The exact number of solar panels that you would need for a system of this size would depend on the power rating or wattage (Watts) of the solar panels you use.

For example, if you choose to use 250-Watt solar panels for your system, you would need 20 solar panels (5000 W ÷ 250 W = 20).

## How big is a 5kw solar system?

Generally, a 5kW solar system would require between 250 and 350 sq. ft. of roof space (between 24 and 32 sq. m.) depending on the efficiency of the solar panels. The more efficient the solar panels are, the less space will be required.

For example, let’s say we use these 440W solar panels from LG which are 22.1% efficient. If we use 12 of these solar panels, we would make up a 5.28kW system (440W x 12 = 5280W).

These solar panels would each take up around 21.4 sq. ft. (2 sq. m.) of space. So for the 12 solar panels, we would need around 257 sq. ft. or 24 sq. m. of space.

Now, let’s say we chose to use these 300W solar panels from TrinaSolar, which are 18.3% efficient. If we use 17 of these solar panels, we would make up a 5.1kW solar system (300W x 17 = 5100W).

These solar panels would each take up around 17.6 sq. ft. (1.64 sq. m) of space. So for 17 of these panels, we would need around 300 sq. ft. or 28 sq. m. of space.

Notice that the system made up of the 22.1% efficient solar panels would require less space (43 sq. ft. less) and would have a higher power rating (180 more Watts).

## How many batteries for a 5kw solar system?

As explained above, a 5kW solar system would – on average – generate 20 kWh (or 20000 Wh) of energy per day. To be able to store and access that amount of energy, you would need – at least – 18 batteries rated at 12V-100Ah, 9 batteries rated at 24V-100Ah, or 5 batteries rated at 48V-100Ah.

However, to properly size a solar battery bank you would need to consider your daily energy consumption. In addition to that, there are other factors to consider, such as the depth of discharge and days of autonomy.

## kW Solar Power System – Costs, Savings, Payback

A 5kW solar system is a medium-sized system perfect for family homes, small commercial buildings or larger homes with less energy usage.

• 14 Tier 1 Solar Panels
• CEC Approved 5 kW Inverter
• Installation by CEC Qualified Retailer

A 5kW solar system is a medium-sized unit perfect for family homes, small commercial buildings, or larger homes with less energy usage.

It’s no secret that electricity bills are a significant expense for every Australian to deal with each month. Rising tariff costs have driven many homes, offices, and commercial enterprises to seek more cost-effective ways to power their home. A 5kW solar system is an excellent alternative and widely suited to many homes.

5kW systems can provide more than the total energy consumption for the average Australian home, making it an obvious, and relatively inexpensive way to reduce your energy bills.

This article will advise you about the cost of 5kW solar systems, their energy output, how many panels they contain, and – most importantly – how much you can save by owning one.

## Is a 5kW Solar System Suitable for My Home?

A 5kW solar system is suitable for medium-size homes with an energy bill between 400-600 per quarter. Determining household energy needs by the number of people in your home can be unreliable, but as a rule of thumb, an average 4-person household will be best suited to a 5kW household.

If your home does not have ducted air conditioning, a heated pool, or regularly uses large white good appliances, then a 5kW system should cover your usage needs. If you have an energy-hungry home and use more than 20-30kW a day, a larger system may be better suited. Or if you are a 2 person household with limited energy requirements then a 3kW solar system is better suited.

It can comfortably supply 20 kWh daily for an average household of four to five occupants.

If your home has a north, east, or west-facing roof with enough space, then a 5kW solar pv system will suit your home.

### How Many Solar Panels are in a 5kW System?

The number of panels in a 5kW system depends on the wattage and size of the panel. A 5kW system produces 5000W of power. So, the number of panels, multiplied by the wattage of each panel, needs to equate to 5000W. On average, there are between 13-20 panels in a solar system, depending on the output of the solar panels themselves.

The panels produced nowadays have wattage as high as 400 W, however, at Instyle Solar, we use 370W panels. At this output, you would need 13-14 panels.

Below is a table showing the average number of panels needed for 5kW system relative to the power output of the panels:

Panel Power OutputNumber of Panels for a 10kW System
200 25
250 20
300 17
350 14
370 14
400 13

The higher each panel’s wattage, the fewer panels a 5kW system will require.

### Do I Have Enough Roof Space for a 5kW Solar System?

If your home is suited for solar, you’ll need between 25 – 35 m² of roof space to install a 5kW solar system.

Solar panels come in various sizes, depending on the manufacturing company, as we mentioned above.

A panel measures 1.7m x 1m in size and consists of 14 to 20 panels, based on the wattage.

You may plan to install a solar system with 370 W per panel. In this case, a 5kW system will consist of 14 solar panels.

However, to determine if your roof has enough space, first, you need to know if your roof is suitable for solar, including if it has multiple orientations or is made of hazardous material.

## How Much Does a 5kW Solar System Cost?

A high-quality 5kW solar system ordinarily costs between 6,600 – 10,160 but due to government rebates available to Australian homeowners, a substantial portion of the upfront price is subsidised.

So, when looking to purchase a 5kW system, your budget should be between 4,500 – 8,000, depending on the components selected and the installer’s installation method.

The CEC determines fair price ranges for solar systems. They have determined a 5kW solar system should cost roughly between 3,500 – 9,500 if you are looking for a quality system.

SYSTEM SIZEESTIMATED PRICE RANGE
2kW 2,800 – 5,600
3kW 2,900 – 6,950
4kW 3,400 – 7,900
5kW 3,500 – 9,500
10kW 7,600 – 14,100

## How Much Will a 5kW Solar System Save You?

On average, a 5kW system will save the average homeowner 56,521 over the course of its lifetime, with an average annual savings of 1,222.0 per year. This is the equivalent of 65,722 before tax over the lifetime of the system. This is based on the assumption that the homeowner has a bill of 600/qtr, installs the panels facing north, and uses 50% of the generated power. The actual amount a homeowner will save is dependent on the amount of power used in the home, the orientation of the solar panels, and the quality of the system.

This is because a 5kW solar system will produce on average 21 kWh per day; multiply that by the number of days in a year (365), and this will amount to 7,200 kWh of energy (21 kWh x 365 = 7,665 kWh).

Data from the Australian Energy Council shows that the average price per kilowatt-hour in Australia equals 25.05 cents (c/kWh).

Now, if you somehow used all of the 7,665 kWh of energy produced by the solar system in one year, you would still reach an annual saving of 1803.60.

However, not all homes use all the power they produce. In fact, some homeowners only consume 50% of the power they produce. In that case, the savings will be reduced.

## What is the Payback Period for a 5kW Solar System?

A 5kW solar system would take an Australian household on average 3.43 years to pay off. This figure however depends on where you live, your cost of electricity, your feed-in tariff, and your daily energy usage.

To determine how long it would take to pay off a system, you must calculate the total monetary value of the energy produced by the system on an annual basis, and divide the cost of the system by this figure.

You can do this by figuring out what the cost of power is, how much you will export, and use in the home, and how what your daily savings are.

Below is a table that shows the average payback time for each capital city based on real production expectations, the latest electricity and more.

CitySystem CostElectricity CostFeed-In TariffEnergy UsageAnnual SavingsPay Off (Years)
Adelaide 5,500.00 0.38 0.12 50% 2,135.37 2.58
Brisbane 5,500.00 0.28 0.12 50% 1,825.00 3.01
Canberra 5,500.00 0.23 0.12 50% 1,405.25 3.91
Darwin 5,500.00 0.27 0.08 50% 1,731.47 3.18
Hobart 5,500.00 0.25 0.065 50% 1,063.86 5.17
Melbourne 4,000.00 0.20 0.12 50% 1,197.20 3.34
Perth 5,500.00 0.29 0.10 50% 1,886.14 2.92
Sydney 5,500.00 0.24 0.15 50% 1,637.03 3.36

All figures are based on the latest prices. Rates and FiT may change. This is for informational purposes only. SolarVic provides up to 1500 towards solar.

## How Long Will a 5kW Solar System Last?

High-quality 5kW solar systems like the ones we have at Instyle Solar come with a warranty of at least 25 years, and an estimated lifespan of 30 years.

This doesn’t mean that the system will stop producing energy after 25 years. It just won’t be as energy-efficient as it was previously. This is because panels degrade over time due to exposure to the sun’s heat and light. This is referred to as Light and Elevated Temperature Induced Degradation or LetiD. Higher quality panels are more resistant to this degradation and perform at their peak for longer.

A report by the National Renewable Energy Laboratory (NREL) in 2012 reveals that solar panels degrade by 0.8% per year on average. As long as external forces don’t damage the panel, the system will continue to serve you for between 25 to 40 years. By year 25, a solar panel is expected to perform at 80% of its original efficiency.

You should also consider inverter degradation. Residential solar inverters have shorter lifespans. They normally last about 10-15 years (with 5 to 10-year warranties). This means you will have to replace your solar inverter sooner than the actual panels.

You can extend the longevity and performance of a solar system through proper maintenance and cleaning.

## How Much Power Does a 5kW Solar System Produce?

A 5kW solar system generates 21kWh of power per day on average. The actual amount a 5kW solar system will produce on a given day is impacted by the average sunlight received in your area, the weather, and the orientation of your solar panels.

This is because on average, an Australian household receives approximately 4.2 peak sun hours per day, however, this can vary based on location, with some cities receiving over 5 hours, and others under 4. A peak sun hour is the equivalent amount of sun received during the middle of the day. So while a solar system is in the sun from sunrise to sunset, the sunlight is closer to spending 4.2 hours in the sun during midday. A 5kW system will produce 5kW of power for every peak hour, so over 4.2 peak sun hours, a system will generate roughly 21kWh.

The amount of direct sunlight available in your location is the primary concern in calculating how much power your solar panels will generate, as the weather and climate will impact the total sunlight absorbed by the panels. For example, clouds or overcast weather can drastically reduce a system’s production.

Here is a table that shows the average system production for each major city, along with the number of peak sun hours it receives.

CityPeak Sun HoursProduction (kWh)
Brisbane 5 25
Canberra 4.4 22
Darwin 5.5 27.5
Hobart 3.7 18.5
Melbourne 4.1 20.5
Perth 5.3 26.5
Sydney 4.6 23

At Instyle Solar, when we calculate the output of a system, we use peak sun hours to make sure our models are correct in the long term.

Additionally, the orientation of the solar panels will impact your system’s ability to produce electricity from sunlight.

## Will a 5kW Solar System Power Your Home?

A 5kW solar system is certainly powerful enough to cater to the average electrical needs of a four-to-five person household.

However, power compatibility depends on:

• Utilities and home appliances that consume energy and therefore determine the maximum power usage in your household.
• Your lifestyle. If you work from home, you’ll consume power all day, unlike a job where you can turn off the power supply until you return from work.
• Any electrical vehicles you own. If you have a Tesla or plan to buy one, a 5kW solar system won’t be enough to power both the car and your household.
• Your average daily energy usage during summer and winter.

Your solar system power compatibility depends on the above-listed factors and how these align to installation in your area.

To understand if a 5kW system can power your home, you’ll divide your average daily usage by 4.2 You can find your average daily use on your electricity bill.

Average daily usage (kWh) / 4 = Your recommended solar system size. Once again this is because a system will produce 4.2 times its size in power per day.

If the kilowatt per hour displayed on your home electricity bill shows you consume 20 kWh per day, a 5kW solar system will be enough. Anything higher than 20 kWh usage per day implies it won’t be sufficient.

We have given you a quick method to determine if a 5kW system will power your home. However, you can always speak to an expert at Instyle Solar for more in-depth advice on what solar system size will suit your needs and plans.

### Can I Install a Battery with a 5kW Solar System?

The short answer to this question is yes.

Installing battery storage systems with a 5kW solar system will enable you to use more of the energy you produce.

According to reports from the Climate Council, installing a 4 kWh battery with your 5kW system for everyday use can boost the amount of self-generated solar power a household consumes from 30% to 60%.

That’s a considerable increase in the amount of self-generated solar power. No wonder analyst projections estimate that 50% of Australian households will implement a solar storage system over the next ten years.

But whether you should install a battery depends on your budget, energy usage, and more. Instyle Solar can help explain whether a battery will work for your home.

If you plan to reduce your carbon footprint, save money or reduce your home electricity bills, installing a battery with a 5kW system is an excellent first step. But you should also consider the additional cost of battery installation, your payback period, and how much you are likely to save over time.

### Should I Consider a Larger or Smaller System?

A few things to consider before going solar are available space, energy needs, cost, and your overall aims for solar system installation.

A smaller system will produce less electricity than a larger system. Whether you’re a single occupant or a two-person household with low energy consumption, a smaller 3kW system will be plenty for daily use.

But if you want a system that will generate extra power so you can export the surplus into the grid and earn some money per kilowatt-hour, you should invest in a larger system. Or maybe you plan to buy an electric car in the near future. In either situation, a larger system is the better option.

The cost is also an important factor since larger solar systems will cost more than smaller solar systems, impacting the payback period.

If your aim is to reduce your carbon footprint, save money or reduce your household electricity bill, a small solar system will be more than sufficient.

### What other systems are there?

There are a number of system sizes to choose from including:

## Get Started!

Interested in getting solar for your home? By clicking below you can use our Smart solar calculator to find out just how much you could save with solar, what incentive you are eligible for, and the impact you will have on the environment.

Don’t wait until next quarter’s bloated bill, and get started today!

Join over 20,000 homeowners who have made the switch with Instyle Solar, or the 1000 positive reviewers who have been more than satisfied with their solar install.

Otherwise, you can always contact us on 1300 133 556, or email us at sales@instylesolar.com.au.

## Ready to Start Saving with a 5 kW Solar System?

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## kw Solar System: Will It Run a House?

A 5kw solar system can be a great way to reduce your reliance on the grid, but it’s important to understand the limitations of a system before making the investment. A 5kw system is a popular choice for homeowners, but it’s not typically large enough to run an entire household.

In most cases, a 5kw system will offset a portion of your energy usage, which can lead to savings on your electric bills. There are a few things to consider when determining if a 5kw system is right for your home. First, consider your energy needs.

A 5kw system will typically produce enough energy to offset a portion of your usage, but it’s important to understand your energy needs before making the investment. If you have a large home or electric bills, a 5kw system may not be enough to meet your needs.

Second, consider the cost of a 5kw system. Solar power systems can be a significant investment, and the cost of a 5kw system will vary depending on the quality of the components and the installation. Be sure to get quotes from several solar installers to compare the cost of a 5kw system. Third, consider the maintenance requirements of a solar power system. Solar power systems require

## Solar power is a viable option for those looking to reduce their carbon footprint

Solar power is one of the cleanest and most renewable energy sources available, making it a great option for those looking to reduce their carbon footprint. Solar panels convert sunlight into electricity and don’t produce any emissions during operation. In fact, a 5kw solar system can offset about 10 tonnes of carbon dioxide every year1 – that’s the equivalent of driving a car for over 12,000 km! In addition to reducing emissions, solar power can also save you money on your energy bill.

Electricity have been on the rise in recent years, and are only expected to continue increasing. Solar power can provide a cost-effective way to insulate yourself from these rising prices. Of course, solar power is not without its challenges.

One of the biggest challenges is the initial cost of solar panels and installation. Solar panels can cost anywhere from 5000 to 25,000, depending on the size and type of system you choose.2 There are also some maintenance costs associated with solar power, though these are typically minimal. Normally in Australia, it takes around 3- 5 years to pay off your solar panels.

Another challenge facing solar power is the intermittency of sunlight. Solar panels only produce electricity when the sun is shining, which means that you’ll need to supplement your solar power with another energy source – like batteries – if you want to be able to use electricity at night or on cloudy days.

Despite these challenges, solar power is a viable option for those looking to reduce their carbon footprint. If you’re interested in solar power, be sure to do your research to find the best system for your needs and budget. 1 https://energysage.com/solar/101/solar-carbon-footprint 2 https://www.energysage.com/solar/cost-of-solar-panels/

## Will a 5kw solar system run a house?

Yes, a 5kw solar system can provide enough power for a small home or apartment. It will not be able to run a larger home or all of the appliances in a home. However, it’s important to note that a 5kW solar system may not be sufficient to power a larger home or to run all of the appliances in a home.

Larger homes tend to have higher energy demands due to more rooms and appliances, and as a result, a 5kW solar system may not be able to meet those energy requirements.

Overall, a 5kW solar system can be a great choice for powering a small home or apartment, but it’s important to consider the energy demands of your home and appliances before investing in a solar system. Consulting with a solar expert or conducting a detailed energy audit can help determine the appropriate size of the solar system for your specific needs.

## The average home uses approximately 8,000 kWh of electricity per year

A 5kw solar system can offset a significant portion of a home’s power usage, but it will not be able to completely offset the power usage of an average home. The average home in the United States uses approximately 8,000 kWh of electricity per year, so a 5kw solar system would offset around 630 kWh of power usage per month.

This means that a 5kw solar system could offset around 22% of an average home’s power usage. In order to completely offset the power usage of an average home, a larger solar system would be needed.

## A 5 kW solar system will generate approximately 5,700 kWh of electricity per year

According to the U.S. Energy Information Administration, the average U.S. household consumes about 11,000 kWh of electricity per year.

A 5 kW solar system will generate approximately 5,700 kWh of electricity per year, which is just over 50% of the average household’s electricity needs. For a family that consumes the national average of electricity, a 5kW system would save them over 500 per year on their energy bill.

In some states, the savings could be even higher due to state and local solar incentives. Solar panels have an average payback period of 5-10 years, making them a very solid investment. While a 5kW system will not completely offset a household’s electricity needs, it will certainly make a significant dent. Any family that goes solar will be doing their part to reduce their reliance on fossil fuels and help combat climate change.

## Solar panels have an average lifespan of 25 years

The average lifespan of a solar panel is 25 years. Many factors affect the lifespan of a solar panel, such as the quality of the materials used, the manufacturing process, the amount of sunlight the panel is exposed to, and the environmental conditions the panel is subject to.

The quality of the materials used in a solar panel will affect its lifespan. Solar panels are typically made of silicon, glass, and metal. The quality of these materials will affect how well the solar panel withstands the elements and how long it will produce electricity.

The manufacturing process of a solar panel can also affect its lifespan. Solar panels are made by combining silicon and other materials to create a photovoltaic cell. The cells are then arranged into a panel. The quality of the manufacturing process will affect the quality of the solar panel. The amount of sunlight a solar panel is exposed to will also affect its lifespan.

Solar panels need sunlight to produce electricity. The more sunlight a panel is exposed to, the longer it will produce electricity. The environmental conditions a solar panel is subject to will also affect its lifespan. Solar panels are typically mounted on rooftops or in open spaces. They are exposed to the elements, including wind, rain, snow, and hail.

The solar panel will last longer if it is not exposed to extreme conditions. Solar panels have an average lifespan of 25 years. The quality of the materials used, the manufacturing process, the amount of sunlight the panel is exposed to, and the environmental conditions the panel is subject to will all affect the lifespan of the solar panel.

## Solar power is a free source of energy once the initial investment has been made

Solar power is a free source of energy once the initial investment has been made. This initial investment usually refers to the installation of solar panels and the necessary equipment to run them.

Solar power is not subject to the fluctuations of the stock market, as other forms of energy are, making it a more stable and consistent investment.

Solar panels have a life expectancy of around 25 years, meaning that once they are installed, they will provide free energy for many years to come. In addition to this, solar panels have little to no maintenance costs, making them, even more, cost-effective in the long run.

## Solar power can significantly reduce your electricity bills

If you’re considering making the switch to solar power, you’re probably wondering about the impact it will have on your electricity bills. The good news is that solar power can significantly reduce your electricity bills, and in some cases, even eliminate them altogether.

How does solar power reduce electricity bills? The answer is simple: by generating your own electricity, you’re not reliant on the power grid, and you’re not paying for the electricity you use. In most cases, the initial investment in a solar power system is offset by the savings you’ll see on your electricity bills.

And, in some cases, you may even be able to sell excess electricity back to the power company. There are a few things to keep in mind when you’ve switched to solar power. First, you’ll want to make sure your solar power system is sized correctly.

Your solar power system should be sized to meet your average electricity usage. Second, you’ll want to make sure your solar power system is installed correctly. A professional solar installer will be able to help you with this.

Finally, you’ll want to make sure you have a backup plan in place in case of a power outage. In most cases, your solar power system will continue to generate electricity even during a power outage. However, it’s always a good idea to have a backup plan in case of an extended power outage.

If you’re considering making the switch to solar power, there’s a good chance it will reduce your electricity bills. Solar power is a great way to save money, and in some cases, it can even help you eliminate your electricity bills altogether.

The 5kw solar system is a great way to save money on your energy bills. It will run a house, but you may need to supplement it with other energy sources during the winter.

## How much energy does a solar panel produce?

While many factors affect the amount of energy a solar panel can produce, you can expect a typical single solar panel in the United States to generate about 2 kilowatt-hours (kWh) per day, saving an average of 0.36 on electricity costs per day.

Now, 0.36 doesn’t seem like a lot, but that’s just the energy savings for one panel over the course of one day. Installing a whole solar panel system, on the other hand, would save you more like 130 a month (or more!).

What determines how much electricity a solar panel will produce, and how can you determine the amount of one solar panel’s generation? Let’s find out.

See how much you can save by going solar

### Key takeaways

• Most residential solar panels today have a power output rating of between 370 watts and 400 watts.
• The average-sized solar panel will produce between 1.5 kilowatt-hours and 2.4 kWh of electricity per day.
• One solar panel generates enough electricity to power small appliances like a TV, lights, or device chargers.
• How much energy a solar panel produces depends on how much sunlight the panel gets, the panel’s construction, your roof’s characteristics, and even how old the panel is.
• Installing a whole solar panel system allows you to power your home with renewable energy, decrease reliance on your utility, and, most importantly, lower your electric bill.

## How much electricity does a solar panel generate?

The average solar panel is able to output between 370 and 400 watts of power. This works out to a single solar panel producing about 2 kilowatt-hours (kWh) of electricity per day. That’s enough electricity to watch your TV nonstop for almost a full 24 hours.

The following table outlines how much electricity a 400-watt solar panel would produce under ideal conditions over the course of a day, a week, a month, and a year:

 Time Electricity production of 400-watt solar panel 1 day 2 kWh 1 week 14 kWh 1 month 60 kWh 1 year 730 kWh

### How many solar panels do I need to power my house?

Let’s be honest, no one is installing just one solar panel on their roof. As mentioned above, one solar panel will produce roughly 2 kWh daily. On the other hand, the average U.S. home uses about 29 kWh of electricity daily. So, you’ll need a lot more than just one panel.

In fact, you’ll probably need at least 15 solar panels on your roof to generate enough electricity to cover your daily energy usage. That works out to about 6,000 watts of solar, or 6 kilowatts (kW). A 6 kW system will produce about 10,950 kWh per year. That’s enough electricity to cover the average household’s electricity usage and potentially eliminate a 135 electricity bill.

The actual number of solar panels you need will largely depend on how much energy you use throughout the year. But it will also depend on your panels’ environment and the panels themselves.

## factors that affect the amount of electricity that solar panels produce

We want to be totally honest with you, most of the time, solar panels won’t produce the maximum amount of energy possible. Solar panel specifications, like power output ratings, are determined by testing the panels in a laboratory under Standard Test Conditions.

Your roof isn’t exactly a lab, and the conditions it’s under aren’t always going to be ideal for your solar panels. There are a number of things that will impact how much energy your solar panel is generating.

### Amount of sunlight

The amount of sunlight that hits a solar panel is one of the biggest factors in how much electricity it will generate. The more sunlight available to the panel, the more electricity it can produce.

This means you’ll want to install solar panels on an unshaded portion of your roof. You don’t want overhanging tree branches or your chimney casting shadows on your panels. Even dust and debris can cause your panels’ production to drop, so it’s important to clean your solar panels once or twice a year.

It’s more than just if your panels are shaded or not. It also has to do with if where you live naturally gets a lot of sunlight. Scientists use “peak sun hours” to compare how much sunlight different places get. Solar panels will be able to generate more electricity in places that get more peak sun hours.

The following table lays out how much energy a 400-watt panel could produce in states that receive different amounts of sunlight, assuming all other conditions are the same:

 State Number of peak sun hours Daily electricity production Arizona 7.5 3.0 kWh Alaska 2.5 1.0 kWh California 6 2.4 kWh New Jersey 4 1.6 kWh

You can hear more about how weather conditions impact solar panel production in this video from SolarReviews founder, Andy Sendy:

### Panel characteristics

The panel itself also affects how much energy it can produce. Solar panels are made up of solar cells, which are what actually turn sunlight into electricity. Today, most solar panels use monocrystalline solar cells, AKA the most efficient silicon solar cell made today. If you used a polycrystalline solar panel, it wouldn’t be able to generate as much electricity as its monocrystalline counterpart.

It’s not just about the material the solar cells are made out of – how much electricity a panel produces is also impacted by how many cells there are and how those cells are shaped! Solar panels typically come in two sizes: 60-cell solar panels for homes and 72-cell panels for larger commercial installations.

72-cell panels have more solar cells, so they’re able to generate more electricity, but they’re too large to use on many residential roofs. However, a lot of solar panel manufacturers today are starting to make 66-cell solar panels that are still practical for home solar, but the extra six cells mean the panels can produce more energy!

Manufacturers are also making more half-cut solar panels, where the solar cells are cut in half with a laser before being put into the panel. This increases the efficiency of the panel so it can generate more electricity. Half-cut panels are also wired differently than traditional panels, so shading has less of an impact on how much energy is generated.

Bifacial solar panels: Bifacial solar panels are able to generate electricity from light that hits both the front and the back of the panel. When sunlight hits the ground and bounces back up, bifacial panels can capture that reflected light and use it to make more electricity. These aren’t particularly useful for homeowners with rooftop solar, but they can be a great option for ground-mounted systems.

The truth is, not all roofs are good for solar. The characteristics of your roof are a major player in how much energy solar panels can produce for your home.

The number one thing you need to consider is the direction of your roof. The best direction for solar panels to face is south, so you’ll want to have a south-facing roof for maximum energy production. This doesn’t mean you can’t install solar panels if your roof faces a different direction. The panels will just generate less electricity because they get less sunlight.

The following table outlines how much electricity a solar panel will generate facing different directions if all other factors are the same:

 Solar panel direction Estimated output South 2 kWh East 1.7 kWh West 1.7 kWh North 1.4 kWh

Assumes 400-watt solar panel and 5 peak sun hours

### The panel’s age

The panel’s age is often forgotten, but it’s important to remember that your solar panels won’t produce the same amount of energy for their whole life. As solar panels age, they lose a bit of their ability to generate power. You can think of it as any other electronic you have. your laptop probably doesn’t work as well as it did the day you bought it.

Solar panels, on average, degrade at a rate of about 0.5% per year. So, by the end of a panel’s typical 25-year warranty period, they usually operate at about 85% of what it was initially. Don’t worry – your solar panels will still generate enough electricity to help lower your utility bills.

See how much it would cost to power your home with solar panels

## How to determine how much electricity a solar panel can produce

So, now that we’ve covered what impacts a solar panel’s ability to produce electricity, we can get into the good stuff. figuring out how much power solar panels will produce for your home.

We’ve already established that there are a number of factors that are going to impact how your solar panels generate electricity. So for the sake of simplicity, we’re only going to take a couple of things into account for the below example, including:

All you need to do is multiply the wattage of your panel by the number of daily peak sun hours. A homeowner in Florida who installs a 400-watt solar panel can expect about four peak sun hours in a day. That means this panel would produce 1,600 watt-hours of electricity per day. Electricity is usually measured in kilowatt-hours, so you simply divide your 1,600 watt-hours by 1,000 to get 1.6 kilowatt-hours.

400 watts x 4 peak sun hours = 1,600 watt-hours per day 1,600 watt-hours /1,000 = 1.6 kWh per day 1.6 kWh x 30 days = 48 kWh per month 1.3 kWh x 365 days = 584 kWh per year

Bear in mind, this is a really simplified way of calculating how much electricity a solar panel produces. The actual amount will fluctuate day by day, even hour by hour, based on all the factors mentioned earlier. Use our solar panel calculator to get a more accurate view of how much electricity you can expect solar to produce on your roof.

 Solar panel model Power rating Estimated daily power production SunPower M-Series 440 W 2.20 kWh REC Solar Alpha Pure 430 W 2.15 kWh Candian Solar HiKu6 420 W 2.10 kWh Qcells Q.PEAK DUO BLK ML-G10 410 W 2.05 kWh Jinko Eagle 66TR G4 400 W 2.00 kWh

Estimated production of a single panel assuming 5 peak sun hours at STC.

Keep in mind, high-wattage panels tend to come with high price tags, too. This means you may have to pay more upfront for your system, but you’ll need fewer panels to meet your energy needs.

## Power your whole home with solar to save money

Now you know how much solar electricity you can expect one solar panel to produce and how much a whole system can, too.

But the best part is that installing solar does way more than just let you power your home with renewable energy. it helps you save money. By using the electricity generated by solar panels on your roof, you don’t have to take electricity from your utility, which means they don’t have to charge you.

Most of the time, you can install enough solar panels to cover all of your electricity costs. In fact, that 6 kW solar system we discussed earlier could save the average American homeowner around 130 a month!

But of course, this is just an estimate. Just like with how much electricity a panel produces, how much solar panels can save you depends on many factors. The easiest way to determine how much solar panels can save you is by using our solar panel savings calculator below. Not only will you get a free solar savings estimate, but you can also choose to get in contact with vetted local solar installers to start getting real solar quotes for your specific home.

## How Much Do Solar Panels Cost? (2023 Guide)

If you’re looking to invest in solar power, we break down the costs and factors that will contribute to the final price of your solar energy system.

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Faith Wakefield is a writer based in North Carolina. She holds economics and English degrees from UNC Chapel Hill, and her work has been featured on EcoWatch, The World Economic Forum and Today’s Homeowner. In her free time, she loves to binge-watch personal finance videos on YouTube, collect books and spend time in nature.

Tori Addison is an editor who has worked in the digital marketing industry for over five years. Her experience includes communications and marketing work in the nonprofit, governmental and academic sectors. A journalist by trade, she started her career covering politics and news in New York’s Hudson Valley. Her work included coverage of local and state budgets, federal financial regulations and health care legislation.

Karsten Neumeister is an experienced energy professional with subject-matter expertise in energy policy and the solar and retail energy industries. He is currently the Communications Manager for the Retail Energy Advancement League and has prior experience writing and editing content for EcoWatch. Before EcoWatch, Karsten worked for Solar Alternatives, curating content, advocating for local renewable energy policy and assisting the solar engineering and installation teams. Throughout his career, his work has been featured on various outlets including NPR, SEIA, Bankrate, PV Mag and the World Economic Forum.

Based on our survey of 1,000 homeowners with installed solar systems, solar panels cost between 15,000 and 20,000 per home. However, according to the Solar Energy Industries Association (SEIA), a residential solar system can cost upward of 25,000 per installation.

We at the Guides Home Team have researched and reviewed the top solar companies to help you better understand the cost of solar and determine if it’s a worthwhile investment for your home. Read on to learn how factors like where you live, your household’s energy usage and the type of solar panels you install can impact the final cost of your solar system.

• Cost Factors
• Cost Breakdown
• How To Save Money
• Are Solar Panels Worth It?
• The Bottom Line

Offers a range of financing options 24/7 customer service line Panel insurance protects against theft and damage

Packages include 24/7 system monitoring 25-year warranty guarantees power production, product performance and workmanship Installation process is handled 100% in-house

## Solar Panel Cost Factors

Your location, energy needs and equipment selection are the top three factors that contribute to solar panel cost.

### Location

Two significant location-based factors will determine your total cost and savings of going solar: the cost of energy where you live and how much sunlight you receive. In states where traditional energy is more expensive, like California, Hawaii and New York, you stand to save more on energy bills when you switch to solar. However, how much sunlight you receive also plays an important role in determining how many solar panels you’ll need (and thus how much you’ll pay for your system). If you live in a super sunny state like Arizona or New Mexico, you’ll have more daily peak sunlight hours, requiring fewer panels to meet your energy needs. That’s not to say solar isn’t worth it if you don’t live in a state with high energy costs and abundant sunlight. See how energy costs compare in your state using the map below, and learn more about how you can determine how many solar panels you need.

### Top Solar Companies By State

Alabama | Alaska | Arizona | Arkansas | California | Colorado | Connecticut | Delaware | Florida | Georgia | Hawaii | Idaho | Illinois | Indiana | Iowa | Kansas | Kentucky | Louisiana | Maine | Maryland | Massachusetts | Michigan | Minnesota | Mississippi | Missouri | Montana | Nebraska | Nevada | New Hampshire | New Jersey | New Mexico | New York | North Carolina | North Dakota | Ohio | Oklahoma | Oregon | Pennsylvania | Rhode Island | South Carolina | South Dakota | Tennessee | Texas | Utah | Vermont | Virginia | Washington | West Virginia | Wisconsin | Wyoming

### Energy Needs

The typical U.S. household uses 10,632 kilowatt-hours (kWh) of electricity each year or around 886 kWh monthly. However, several factors can affect your energy needs, including the size of your home, how many people are in your household and if you have an electric vehicle (EV). The higher your household’s energy consumption, the larger the solar panel system necessary to offset your usage. For example, based on our average cost of a solar panel at 3 per watt with installation, a 6 kW system would run you around 18,000, while a 12 kW system would double the cost. Solar providers typically want to install a system that generates just enough electricity to support your typical energy usage — so your panels aren’t producing too much or too little energy. When designing your solar system, you’ll typically speak with a solar expert to determine your current and future needs and decide what size system is right for you.

### Solar Panel Selection

The cost of your panels and equipment is by far the largest expense you’ll pay during your solar installation. There are many solar panel options available, and the manufacturer, installer and type of panels you choose will affect the final cost of your system. There are three common types of solar panels: thin-film, monocrystalline and polycrystalline. Beyond those options, each solar panel manufacturer offers a selection of products with different wattages, durability and technologies that affect energy production and overall cost. Your solar installer will walk you through choosing the right kind of panel for your home. However, it doesn’t hurt to research the best solar panel brands and manufacturers on your own.

### Solar Installation Company

Another factor that can greatly affect the ultimate cost of your solar system is the installation company that you choose. Use the chart below to help you find a provider with an installation cost within your budget and request a free quote.

Provider Avg. Cost of a 10-kW System Compare Quotes
SunPower 15,000–20,000 Get Quote
Sunrun 15,000–20,000 Get Quote
Blue Raven Solar 15,000–20,000 Get Quote
Elevation 10,000–15,000 Get Quote
Freedom Solar 25,000–30,000 Get Quote
Green Home Systems 20,000–25,000 Get Quote
Palmetto Solar 15,000–20,000 Get Quote
Momentum Solar 20,000–25,000 Get Quote
Solar Energy World 25,000 Get Quote
Tesla Energy 25,000–30,000 See

## Solar Panel Installation Cost Breakdown

Although the exact cost of your solar panel installation will vary depending on the company and type of panels you choose, you can expect your equipment (panels, inverters, racking or mounting hardware, etc.) to make up nearly half of your total cost. Labor costs, administration fees, taxes, building permits and electrical permits comprise the rest of your expenses. Jesse Solomon, the co-founder of NCSolarNow, explained the cost breakdown of a typical solar panel installation as follows:

## How To Save Money on Solar Panels

The demand to expand renewable energy infrastructure in the U.S. shows no signs of slowing. As a result, the federal government and many states are incentivizing residents to install solar panels on their homes. There are plenty of programs that can help you save money on solar panels. Your solar installer can help you apply for the federal solar tax credit and any state and local incentives for which you’re eligible.

### Federal Solar Incentives

The Federal Solar Investment Tax Credit (ITC) is a tax incentive worth 30% of the total cost of your solar panel system. All U.S. homeowners who install solar panels are eligible for this credit, and it reduces what you owe in federal income taxes. For most solar systems, this credit is worth several thousand dollars, which is significant savings. However, if you choose to lease your panels, you will not be eligible for this tax credit. You can only claim this tax credit if you own your panels. The credit is currently set to decrease to 26% in 2033, then to 22% in 2034 before expiring entirely in 2035.

### State Solar Incentives

In addition to federal incentives, many states offer other incentives to go solar, including tax breaks, credits and rebates. If you’re interested in the solar incentives available in your state, you can browse the Database of State Incentives for Renewables Efficiency (DSIRE) or visit your local government website to learn more. Additionally, net metering is a program that allows you to sell the excess electricity your solar panels generate to your utility company for billing credits. Forty-one states and Washington D.C. have a state-mandated net metering policy, though some policies are better than others. States without a mandated net metering policy, like Texas and Idaho, may have utility companies that offer the program. Many states also offer solar rebate programs for low- and moderate-income households or community solar programs that aim to make clean energy more accessible.

### Solar Incentives by State

Alabama | Alaska | Arizona | Arkansas | California | Colorado | Connecticut | Delaware | Florida | Georgia | Hawaii | Idaho | Illinois | Indiana | Iowa | Kansas | Kentucky | Louisiana | Maine | Maryland | Massachusetts | Michigan | Minnesota | Mississippi | Missouri | Montana | Nebraska | Nevada | New Hampshire | New Jersey | New Mexico | New York | North Carolina | North Dakota | Ohio | Oklahoma | Oregon | Pennsylvania | Rhode Island | South Carolina | South Dakota | Tennessee | Texas | Utah | Vermont | Virginia | Washington | West Virginia | Wisconsin | Wyoming