Understanding the difference between kilowatts (kW) and kilowatt-hours (kWh) is crucial for anyone interested in solar energy. A kilowatt measures power capacity; it's the rate at which electricity is used or produced. For example, a solar panel rated at 320 watts generates 0.32 kW of power.
In contrast, a kilowatt-hour measures energy usage or production over time. One kilowatt-hour equals the energy consumed by a 1,000-watt device running for an hour. So, a 4.8 kW solar system can generate 4.8 kWh of energy during one hour of peak sunlight.
When planning a solar installation, knowing your annual kWh usage is essential. This helps determine the size of the system you need. For example, a 6 kW system costing around $21,000 (or $14,700 after incentives) can produce between 8,000 and 10,000 kWh yearly, significantly reducing your electricity bills. Location and sunlight availability also impact the actual energy production of your solar system.