Solar panel output depends on panel rating, sunlight hours, and system efficiency. Knowing how to calculate expected generation helps you size a system correctly and estimate savings.

Key Metrics

  • Peak power (Wp): Output under standard test conditions (1,000 W/m², 25°C)
  • Peak sun hours (PSH): Hours per day when irradiance averages 1,000 W/m²
  • System efficiency: Accounts for inverter losses, shading, temperature, wiring

Daily Output Formula

Daily output (kWh) = Panel power (kW) × Peak sun hours × System efficiency

Example: 10 × 400W panels in London (2.8 PSH average), 80% efficiency:

Panel power = 10 × 0.4 = 4 kW
Daily output = 4 × 2.8 × 0.80 = 8.96 kWh
Annual output = 8.96 × 365 = 3,270 kWh

Peak Sun Hours by Location

LocationAnnual PSH (daily avg)
London, UK2.5–3.2
Edinburgh, UK2.2–2.8
Madrid, Spain4.5–5.5
Dubai, UAE5.5–6.5
Sydney, Australia4.8–5.6
New York, USA3.5–4.2
Los Angeles, USA5.0–5.8

System Losses (Why Not 100% Efficient?)

Loss typeTypical deduction
Inverter efficiency3–5%
Temperature effect3–8% (panels lose ~0.4%/°C above 25°C)
Shading/soiling1–5%
Wiring and connections1–2%
Total system efficiency75–85%

Sizing a System for Your Needs

Step 1: Find your annual electricity consumption from your bills (e.g. 3,500 kWh/year)

Step 2: Estimate system output per kWp installed:

Annual yield ≈ kWp × PSH × 365 × efficiency

In London: 1 kWp × 2.8 × 365 × 0.80 = 819 kWh/year per kWp

Step 3: Size your system:

System size (kWp) = Annual demand ÷ Annual yield per kWp
= 3,500 ÷ 819 = 4.3 kWp → round to 4.5 kWp (≈11–12 panels)

Financial Return

Example: 4.5 kWp system, UK:

  • Cost: approx £6,000–£8,000 installed
  • Annual generation: ~3,700 kWh
  • Self-consumed @ 24.5p: £480/year
  • Exported to grid (Smart Export Guarantee): £80/year
  • Total annual saving: ~£560
  • Payback period: ~12–14 years

Battery Storage

Adding a battery lets you use more of your generated power at night. A 5 kWh battery typically increases self-consumption from 30% to 50–60%, adding ~£150–200/year in savings but adding £2,000–£3,000 to system cost.