Calculating Your Solar Needs: Understanding Efficiency Ratings
SOLAR INSIGHTS

Calculating Your Solar Needs: Understanding Efficiency Ratings

By Brendan Bostock | 15 Jan 2026

SolarInsights: Sizing Up Your Solar System - Understanding Efficiency Ratings

Thinking about going solar? Congratulations! It's a fantastic way to reduce your energy bills and your carbon footprint. But navigating the world of solar panels can feel overwhelming. One of the first questions you'll likely face is: "How big of a system do I need?" This blog post will help you understand how to calculate your solar needs by focusing on efficiency ratings and other crucial factors. For a more in-depth look, check out our Complete Guide.

Understanding Your Energy Consumption

Before diving into panel specifics, it's essential to understand your own energy consumption habits. Your electricity bill is your best friend here! Look for your 'average daily use' in kilowatt-hours (kWh). This number represents the total electricity you use, divided by the number of days in your billing period (usually around 90 days). The average Australian home consumes between 11 and 23 kWh per day. Knowing your specific usage is crucial, as the more electricity you use, the larger your solar system will need to be to offset that usage.

Think about when you use the most electricity. Are you a daytime consumer, running appliances while the sun is shining? Or do you primarily use energy in the evenings when solar production is low? This timing dramatically impacts the financial benefits of solar.

System Size: kW Explained

The size of a solar system refers to its total power-generating capacity, measured in kilowatts (kW). One kilowatt equals 1000 Watts. For example, if you have 19 solar panels each rated at 350 Watts, your system size would be 6,650 Watts or 6.65 kW. The system size is based on the number of panels and their rated capacity.

Panel Efficiency: What Does it Really Mean?

Panel efficiency refers to how well a solar panel converts sunlight into electricity. It's expressed as a percentage, representing the amount of sunlight that's transformed into usable power. A higher efficiency rating means the panel can generate more electricity from the same amount of sunlight. This is especially important if you have limited roof space. If space is a constraint, you'll want to maximise your energy production by using more efficient panels.

While higher efficiency is generally desirable, it often comes at a higher price. Therefore, consider the cost-benefit ratio.

Other Factors Affecting System Size

Several other factors influence the ideal size of your solar system:

  • Roof Space: The amount of available sunny roof area is often a limiting factor, especially in urban areas. A typical residential solar panel is around 1.7 square metres in size. A common 6.6 kW system might occupy between 29 and 32 square metres of roof space. Solar panels can be installed in portrait or landscape orientation to optimise space utilisation.
  • Inverter Size: The inverter converts the direct current (DC) electricity generated by the panels into alternating current (AC) electricity that your home can use. In many systems, the inverter is sized slightly smaller than the total panel output. For example, a 6.6 kW solar system might be paired with a 5 kW inverter. This is often done because panels rarely operate at their full rated capacity, and it can be a cost-effective approach. Discuss inverter specifications with your installer.
  • Budget: Your budget will inevitably play a role in determining the size and type of solar system you can afford.
  • Future Energy Needs: Consider any potential increases in your energy consumption in the future, such as adding an electric vehicle or air conditioning.

Getting Expert Advice

Calculating the ideal solar system size for your home can be complex. Solar retailers and installers typically use specialised software to estimate suitable system sizes, designs, and projected savings. It's always best to discuss the assumptions behind these calculations with your solar professional.

Important Considerations & Potential Rebates

Keep in mind that there are limits when sizing your system and it is important you seek professional advice. For example, if the system size (total rated solar panel output) exceeds the inverter manufacturer's specifications, you may not be eligible for the Australian Government's Small-scale Renewable Energy Scheme rebate.

Tools and Resources

Tools like SunSPOT can provide a free guide to the installed system cost, projected annual bill savings, emissions avoided, and payback period. You can even add a battery to the calculation to see its impact.

Conclusion

Determining the right solar system size involves understanding your energy consumption, the efficiency ratings of solar panels, and other factors like roof space and budget. By carefully considering these elements and consulting with a reputable solar installer, you can make an informed decision and invest in a solar system that meets your needs and helps you save money while contributing to a more sustainable future.

Brendan Bostock
Written by Brendan Bostock

Editor in Chief & Solar Enthusiast

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