“How much will a solar system cost” would probably be the first question that comes to mind when planning to install solar PVs. The question might not be answered without doing a little research work, though. Solar panel cost vary, depending on the type and the size of the solar system you’re going to purchase as well as your location.

The following are guides that you may use to be able to compute and have an estimate of how much installing solar PV could cost:

**Size of your Solar System**

Knowing the size of solar system you need for your home is one way to determine, or at least estimate the **cost of a Solar PV**. It may sound a little complicated, but with the following steps, you will be able to estimate the size of solar system your home needs. Then you can now calculate how much it would cost you to install the solar system:

* 1st Step:* Check on your electricity bill your average electricity usage per year (kWh/year).

__where:
__

**kWh/year** is the average **kWh** of electricity your house use in a typical year

** Example:** Your monthly electricity bill is

**RM100/month**, therefore, you might be using

**1000 kWh/month**.

* 2nd Step:* Get the number of hours per day the sun shines in your location.

* 3rd Step:* Decide the percentage of your total electricity bill you wanted to come from the sun.

** note:** If you do you have a big budget, you might want to say 80-100%, but you have to remember that you’re still on-grid, therefore, you”ll most likely still be using even just a bit of utility’s electricity.

Now if you do have a limited budget, you might want to start with 50%, and talk to your installer about leaving a space for later expansion.

* 4th Step:* You can get an estimate of the cost by using formula below.

__where:__

**Array Size in kW** = **(your average kWh/year) / (365 days/year) / (solar hours/day) * (percentage you wanted to be covered) / (75% constant efficiency)**

** example: **Your electricity bill is usually

**RM100/mo**and use about

**1000kW/month**. You get about

**5 hours**of sunlight per day and you wanted to cover

**80%**of your bill.

__calculation:__ (12,000kWh/year) / (365 days/year) / (5 kWh/day) * (75%) / (75%) = 6.58kW Array

**Expect your **AC power** to be about **75%** of the **DC** **power size **due to efficiency losses such as dust, wiring, irradiance, and temperature, thus, **75%** constant efficiency is always included in the calculation.

* 5th Step:* Get an estimate of installing a solar PV with the solar array size that you have using a Home

**Solar Cost Calculator**.