Updated July 2026

How to Calculate a Solar System for Your Home

The full home solar calculation, end to end: turn your electricity bill into units, units into system size, and size into panels, roof area, cost and subsidy, with one worked example throughout.

Step 1: Turn Your Bill into Monthly Units

Your bill lists units (kWh) consumed; use a 12-month average if AC use swings your seasons. If you only know the amount, divide by your effective tariff: a ₹3,000 bill at roughly ₹8.5/unit means about 350 units. Worked example: the Sharma family in Nagpur averages 350 units a month.

Step 2: Convert Units into System Size

System kW = Monthly units ÷ (Peak sun hours × 30 × 0.8)

Nagpur gets 4.8 peak sun hours: 350 ÷ (4.8 × 30 × 0.8) = 3.04 kW, rounded up to 3.5 kW. The solar system size calculator applies your own city's figure. If you are also adding appliances soon (AC, EV), size for the future load using the solar load calculator.

Step 3: Panels and Roof Check

3,500 W ÷ 550 W = 7 panels, needing 280 to 350 sq. ft. of shadow-free roof. The Sharmas' 400 sq. ft. terrace passes easily. Verify yours with the roof area calculator and set the mounting angle with the tilt angle calculator (21° in Nagpur).

Step 4: Cost, Subsidy and Net Investment

3.5 kW × ₹58,000 ≈ ₹2.03 lakh gross for on-grid. The central subsidy contributes the capped ₹78,000 (Maharashtra adds no state top-up), leaving a net of about ₹1.25 lakh. Confirm your own numbers with the cost calculator and subsidy calculator.

Step 5: Savings and Payback

The system generates about 403 units a month, wiping out nearly the whole bill: roughly ₹2,900 to ₹3,100 a month saved, or ₹35,000+ a year. Payback lands around 3.5 years, after which the family enjoys two decades of near-free power. The savings and payback calculator adds tariff escalation for the 25-year picture, and the EMI calculator shows the loan route: financing the net cost at 8.5% over 5 years costs about ₹2,560 a month, still below the saving.

Sample Sizing Worksheet You Can Copy

StepYour EntrySharma Family Example
12-month average units________350
City peak sun hours________4.8 (Nagpur)
System kW = units ÷ (PSH × 24)________350 ÷ 115.2 → 3.5 kW
Panels = kW × 1000 ÷ 550________7
Roof needed = kW × 80–100________280 – 350 sq. ft.
Gross cost = kW × ₹58,000________₹2.03 lakh
Subsidy (₹30k/₹60k/₹78k cap)________₹78,000
Net cost________₹1.25 lakh
Monthly saving ≈ units × tariff________~₹2,900
Payback = net ÷ (saving × 12)________~3.6 years

Fill the blank column with your own numbers as you work through the steps above; the shorthand "PSH × 24" equals PSH × 30 days × 0.8 performance ratio.

The Decisions That Change Your Answer

  • On-grid vs hybrid: reliable grid → on-grid (cheapest, fastest payback). Frequent cuts → hybrid with a battery sized in the battery calculator.
  • Summer-heavy usage: if summer bills run double, size closer to the summer average or accept grid support in peak months.
  • 3 kW sweet spot: the subsidy caps at 3 kW, so homes near that consumption get the best subsidy-per-rupee at exactly 3 kW (see the 3kW system page).
  • Future loads: an EV adds roughly 1 kW of needed capacity per 100 km of weekly driving.

Want it all done in one go? The solar calculator for India runs this exact five-step chain from a single bill amount.

Home Solar Calculation: Frequently Asked Questions

How do I calculate what solar system my house needs?+
Average your monthly units, divide by (peak sun hours × 30 × 0.8) for kW, convert to panels at 550W each, then check roof space at 80 to 100 sq. ft. per kW. A 350-unit Nagpur home lands at 3.5 kW, 7 panels, ~300 sq. ft.
How much solar do I need per ₹1,000 of electricity bill?+
Roughly 1 kW per ₹1,000 of monthly bill in average-tariff states. High-tariff cities (Mumbai, Kolkata) need slightly less capacity per rupee of bill; low-tariff states slightly more.
Should I size my system for summer or annual average?+
Annual average is the standard because net metering banks surplus from mild months against summer. Size toward summer only if your DISCOM settles credits poorly or you are off-grid.
What if my roof cannot fit the calculated size?+
Install what fits with the highest-wattage panels available: even a partial system offsets its share of the bill at the same per-unit economics. The roof calculator's "what fits my roof" mode gives the honest maximum.
Is it cheaper to buy a slightly bigger inverter and add panels later?+
If growth is certain within 2 to 3 years, yes: an inverter one step up costs little, while replacing one later costs a lot. Panels themselves are easy to add when the inverter and sanction allow.