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Panels Needed
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Enter your monthly usage to calculate
-- kW system
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System Size (kW)
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Panels
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Annual Production
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Roof Area (sq ft)
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Offset %
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Peak Sun Hours
☀️ Panels -- pcs ⚡ Inverter -- kW 🏠 Home --% Grid
System kWkWh/day ÷ (PSH × 0.80)Daily usage / (sun hrs × derate)
PanelsSystem kW ÷ Panel kWRound up to whole panels
Annual kWhkW × PSH × 365Estimated annual production
Battery Inputs
% of home load considered essential during an outage
Battery Sizing Results
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Required Capacity (kWh)
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13.5kWh Modules
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Essential Backup Hours
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Est. Battery Cost
Cost Inputs
Investment Summary
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Gross System Cost
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Federal ITC (30%)
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Net Cost After Credits
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Year 1 Savings
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Simple Payback (yrs)
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25-Year Net Savings
25-Year Savings Projection

How to Size a Solar Panel System

1
Find Your Daily Usage
Look at your electric bill for monthly kWh. Divide by 30 to get daily usage. The US average is ~877 kWh/month = 29 kWh/day.
2
Determine Peak Sun Hours
Peak sun hours (PSH) vary by location. Arizona gets ~6 PSH; the Northeast gets ~3.7 PSH. Your region determines how much each panel produces daily.
3
Calculate System Size
System kW = Daily kWh ÷ (PSH × 0.80 derate). Divide by panel wattage to get panel count. Round up — you can never have half a panel.

Key Formulas

System Size (kW)kWh/day ÷ (PSH × derate)derate = 0.80 (80% system efficiency)
PanelsSystem kW ÷ Panel kWe.g., 7.5kW ÷ 0.4kW = 19 panels
Battery (kWh)Daily kWh × days ÷ DODDOD = 0.9 lithium, 0.5 lead acid

Key Terms

Peak Sun Hours
The number of hours per day where sunlight intensity equals 1,000 W/m² (full sun equivalent). Not the same as daylight hours — accounts for clouds, angle, and season.
Derate Factor
System efficiency factor (typically 0.75–0.85) that accounts for inverter losses (4–8%), wiring losses (2–3%), temperature derating (5–10%), and soiling (2–5%).
kW vs kWh
kW (kilowatts) is power — the rate of energy use. kWh (kilowatt-hours) is energy — the amount used over time. Solar panels are rated in kW; your bill shows kWh consumed.
Net Metering
A utility billing arrangement where excess solar electricity sent to the grid earns credits against your bill. Most states have net metering, but credits may differ from retail rate.
DOD (Depth of Discharge)
The percentage of battery capacity that can be safely used. Lithium batteries: 80–90% DOD. Lead-acid: 50% DOD. Higher DOD = more usable capacity per kWh of battery.
ITC (Investment Tax Credit)
Federal solar tax credit of 30% of installed system cost through 2032, directly reducing federal income tax owed. Not a rebate — you must owe federal taxes to use it fully.

Real-World Examples

Example 1

Average Home in Phoenix, AZ

Usage: 1,200 kWh/month = 40 kWh/day | PSH: 6.0

System size: 40 ÷ (6.0 × 0.8) = 8.33 kW

Panels: 8,330W ÷ 400W = 21 panels. Cost: ~$25,000 gross, $17,500 after 30% ITC. Payback: ~7 years.

Example 2

Small Home in Massachusetts

Usage: 600 kWh/month = 20 kWh/day | PSH: 3.7

System size: 20 ÷ (3.7 × 0.8) = 6.76 kW

Panels: 6,760W ÷ 430W = 16 panels. With MA state rebates, payback ~9 years.

Example 3

Off-Grid Cabin in Colorado

Usage: 300 kWh/month = 10 kWh/day | PSH: 4.5

System: 10 ÷ (4.5 × 0.8) = 2.78 kW, 7× 400W panels. Battery: 2-day backup with 2× 13.5 kWh batteries for full off-grid capability.

Frequently Asked Questions

How many solar panels does the average home need?

The average US home uses 877 kWh/month (29 kWh/day). With 400W panels and 4.5 peak sun hours, you need about 20 panels for a 7.5 kW system. Actual needs vary widely by climate, home size, and energy efficiency.

What is a good solar panel wattage to choose in 2025?

In 2025, 400–450W panels offer the best value for most residential installations. Premium 500W panels cost more per panel but fewer are needed, which can help with limited roof space. Most installers use 400–430W panels as the standard.

Do I need batteries with solar panels?

For grid-tied systems, batteries are optional — the grid acts as backup. Batteries add $8,000–$20,000 but provide power during outages and allow time-of-use arbitrage. For off-grid systems, batteries are required to store energy for nighttime use.

How much does a 10 kW solar system cost?

A 10 kW solar system costs $25,000–$35,000 installed before incentives in 2025. After the 30% federal ITC, net cost is $17,500–$24,500. With electricity savings of $1,500–$2,500/year, payback is typically 8–12 years.

What happens to excess solar energy?

In a grid-tied system with net metering, excess electricity feeds back into the grid and your utility credits your account — often at retail rate. Without net metering, excess power is wasted. Battery storage captures excess for nighttime use.

How long do solar panels last?

Modern solar panels carry a 25-year production warranty and typically degrade at 0.5–0.7% per year. After 25 years, most panels still produce 85–90% of original output. Physical lifespan is often 30–40 years. Inverters typically need replacement at 10–15 years ($1,500–$4,000).

Does my roof orientation matter for solar?

South-facing roofs at 30–35° tilt are optimal in the US, maximizing year-round production. West-facing roofs produce 10–20% less but generate more power in the afternoon (valuable for time-of-use rate plans). East-facing roofs are less ideal. Flat roofs can use tilt brackets for optimal angle.

How does shading affect solar production?

Even partial shading of one panel can dramatically reduce output in traditional string inverter systems — one shaded panel can bring down the whole string. Microinverters or DC optimizers (power optimizers) on each panel mitigate shading impact. If your roof has shade issues, use microinverters.

What permits do I need for solar installation?

Most jurisdictions require an electrical permit, a building permit (for roof penetrations), and sometimes a utility interconnection application for grid-tied systems. A licensed solar installer handles all permits. Systems installed without permits may not qualify for incentives and can create insurance issues.

What is the difference between grid-tied and off-grid solar?

Grid-tied systems connect to utility power and sell excess energy, but provide no backup during grid outages (unless paired with batteries). Off-grid systems are completely independent, requiring battery storage sized for several days of autonomy. Hybrid systems are grid-tied with battery backup for outage protection.

Can I install solar panels myself?

DIY solar installation is possible but not recommended for most homeowners. Electrical work requires permits and licensed electricians in most jurisdictions. Improper installation can void panel warranties, insurance, and incentive eligibility. DIY can save 30–40% on labor but adds permitting complexity and safety risk.

Will solar panels increase my home value?

Studies show owned (not leased) solar systems increase home value by $3–$4 per watt of installed capacity, or about $15,000–$20,000 for an average system. This value increase is often exempt from property tax increases in many states. Solar homes also sell faster than non-solar homes.

How does the federal solar tax credit (ITC) work?

The 30% ITC is a dollar-for-dollar reduction of your federal income tax liability. On a $25,000 system, you get a $7,500 credit on your taxes. If your tax liability is less than the credit, you can carry the remainder forward to the following tax year. It applies to both residential and commercial systems through 2032.

What is a solar system derate factor?

The derate factor accounts for real-world efficiency losses: inverter efficiency (4–8%), wiring resistance (2–3%), soiling/dust (2–5%), temperature effects (5–10% in hot climates), and panel mismatch (1–2%). A typical overall derate is 0.77–0.82. This calculator uses 0.80 as the default.

How many solar panels fit on a typical roof?

A standard 400W panel is approximately 5.5 × 3.5 feet = 19.25 sq ft. With spacing, each panel needs ~22–25 sq ft. A typical 1,500 sq ft home might have 800–1,000 sq ft of usable south-facing roof space — enough for 30–40 panels (12–16 kW system). Most average homes need only 15–25 panels.