How Many Panels Do I Really Need?
Alright, so you want to build your panels and need to find out how much this is really going to cost you. If you want to cover a certain percentage of your power bill and see how many panels this will require, then here is the calculation you need to do.

Exacly how many solar panels will I need to build?
Lets start with how much energy you want to produce. Lets say for example that your home consumes 200kWh per month. This information can be found on your electricity bill. If you only have a monthly bill that’s fine, but if you get an annual bill or it only shows your annual usage, then you will want to divide this be twelve to get your monthly. Getting an annual bill is actually better as it will give you an average per month for the year.
Now that you have this, divide that number by 30 in order to get an average daily use.
eg. 200kWh per month = 6.66kWh per day or 6667 watts per day
photo credit: jasminejennyjen
Now calculate how much energy you can to generate!
You now have your kilowatts (or watts, kilowatts x 1000) usage per day. This is the amount of energy your solar panels need to produce to completely cut out your electricity bill. The next step is to see how much energy solar panels will produce in the area that you live in, by the hours of direct sunlight they will be subjected to.
In order to calculate this info, you need to look at your local solar radiation map. In Europe, this information can be found at the European Union Solar Radiation and PV Maps and in the USA the Solar Radiation Map will give you all the information you need.
It is important to take into consideration that there will be a little power loss due to wiring the transformers, so in the following calculation, we will make the adjustment and multiply the number by 1.25 in order to compensate.
Lets say that your home receives 5.5 hrs of direct sunlight on average daily. Your Calculation would look like this…
eg. 6667watts / 5.5hrs = 1212watts x 1.25 = 1515 watt
Buying or building solar panels that are 120watt per panel would mean that you would need 13 panels in order to run your entire home.
eg 1515 /120 = 12.625 panels
Building 13 solar panels at around $175 a panel means that your entire solar energy system would cost you no more than $2275.00 that before rebates and incentives. Not too shabby!