Updated July 2026

Solar Panel Calculation Formula: The Complete Guide

Every formula used to design a solar system, in one place: system sizing, panel count, generation, roof area, cost, subsidy, battery and EMI, each with a worked Indian example and a calculator that runs it for you.

1. Solar System Size Calculation Formula

System size (kW) = Monthly units ÷ (Peak sun hours × 30 × Performance ratio)

Example: a Nagpur home using 350 units a month, with 4.8 peak sun hours and a 0.8 performance ratio: 350 ÷ (4.8 × 30 × 0.8) = 350 ÷ 115.2 = 3.04, rounded up to 3.5 kW. Run yours in the solar system size calculator.

2. Number of Solar Panels Formula

Panels = System watts ÷ Panel wattage (rounded up)

Example: 3,500 W ÷ 550 W = 6.4, so 7 panels of 550W. Higher-wattage 620W modules bring it down to 6. The how many solar panels calculator handles the rounding and module options.

3. Solar Panel Output Calculation Formula

Daily output (kWh) = System kW × Peak sun hours × 0.8
Monthly output = Daily × 30 · Annual output = Daily × 365

Example: 3 kW × 4.8 × 0.8 = 11.5 units a day, about 346 a month. Full walk-through in the panel output guide or the generation calculator.

4. Roof Area Calculation Formula

Roof area (sq. ft.) = System kW × 80 to 100

Example: a 3 kW system needs 240 to 300 sq. ft. of shadow-free roof, including row spacing and walkways. Check your roof with the roof area calculator.

5. Solar System Cost and Subsidy Formula

Gross cost = System kW × Rate per kW (on-grid ≈ ₹58,000)
Net cost = Gross − Central subsidy (₹30,000 / ₹60,000 / ₹78,000 cap) − State top-up

Example: 3 kW × ₹58,000 = ₹1,74,000 gross; minus the ₹78,000 subsidy = ₹96,000 net. Price your own case in the solar panel cost calculator and subsidy calculator.

6. Savings and Payback Formula

Monthly savings = Self-used units × Tariff + Exported units × Export rate
Payback (years) = Net cost ÷ Annual savings

Example: 346 self-used units × ₹8.5 = ₹2,941 a month, ₹35,292 a year. Payback = 96,000 ÷ 35,292 ≈ 2.7 years. See the savings and payback calculator for escalation-adjusted 25-year figures.

7. Battery Size Calculation Formula

Battery kWh = Load (W) × Backup hours ÷ 1000 ÷ 0.85 inverter eff. ÷ DoD
Capacity (Ah) = Battery kWh × 1000 ÷ Bank voltage

Example: 800W for 4 hours = 3.2 kWh; ÷ 0.85 ÷ 0.85 (lithium DoD) = 4.4 kWh, or 185 Ah at 24V. The solar battery calculator compares lithium and lead-acid instantly.

8. Solar Loan EMI Formula

EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1) · r = annual rate ÷ 12, n = months

Example: ₹96,000 at 7% for 5 years gives an EMI of ₹1,901. The solar loan EMI calculator also compares the EMI against your monthly savings.

9. Panel Efficiency and Tilt Formulas

Efficiency (%) = Panel watts ÷ (Area sq. m. × 1000) × 100
Fixed tilt = Latitude · Winter = Latitude + 15° · Summer = Latitude − 15°

A 550W panel of 2.58 sq. m. is 21.3% efficient; a Nagpur roof (21.1°N) tilts at 21°. Use the efficiency calculator and tilt angle calculator.

Quick Reference: All Formulas at a Glance

What You WantFormulaTypical Result
System size (kW)units ÷ (PSH × 30 × 0.8)~1 kW per 120 units
Panel countwatts ÷ panel W, round up2 panels per kW (550W)
Daily output (kWh)kW × PSH × 0.8~4 units per kW
Roof areakW × 80–100 sq. ft.~90 sq. ft. per kW
Net costkW × ₹58k − subsidy₹96k for 3 kW
Paybacknet cost ÷ annual savings3 – 6 years
Battery (kWh)W × hrs ÷ 1000 ÷ 0.85 ÷ DoD4.4 kWh for 800W × 4h
Inverter (VA)W ÷ 0.8 × 1.21.5 × load watts

Print or screenshot this table; it condenses everything an installer's proposal should be able to justify.

The Constants Behind Every Formula

Standard planning constants (India, 2026)

  • Performance ratio: 0.8 (dust, heat, wiring, inverter losses)
  • Peak sun hours: 3.5 (Shillong) to 5.8 (Jodhpur); ~4.8 typical
  • Module wattage: 540 – 620W; roof norm: 80 – 100 sq. ft./kW
  • Costs: ₹58k/72k/85k per kW (on-grid/hybrid/off-grid) ±10%
  • Tariff escalation: ~5%/yr; degradation: ~0.5%/yr

Prefer not to do the maths at all? The solar calculator for India on our homepage chains all of these formulas together from a single electricity bill.

Solar Calculation Formulas: Frequently Asked Questions

What is the basic formula to calculate solar panel requirements?+
System kW = monthly units ÷ (peak sun hours × 30 × 0.8), then panels = system watts ÷ panel wattage. A 350-unit home in a 4.8 sun-hour city needs about 3.5 kW, which is 7 panels of 550W.
How do I calculate solar power generation manually?+
Multiply system kW by peak sun hours and 0.8: a 5 kW system at 5 sun hours generates 5 × 5 × 0.8 = 20 units a day. Multiply by 30 for monthly and 365 for annual output.
Is there a solar calculation formula PDF I can download?+
You do not need one: this page lists every formula with worked examples, and each links to a live calculator that applies it with your city's real data. Bookmark this page as your reference sheet.
Why do all formulas use a 0.8 factor?+
That is the performance ratio: real systems deliver about 80% of theoretical output after dust, heat, wiring and inverter losses. Skipping it is the top reason quotes overpromise generation.
How accurate are these manual calculations?+
Within about ±10% of a professional simulation for standard rooftops, which is plenty for planning and quote-checking. Shading and unusual orientations need a site survey to capture properly.