Solar panels are everywhere—on rooftops, in fields, carports, and in shared installations known as community solar farms. Despite their growing popularity, many people still wonder how much energy solar panels produce prod—and if they make a difference.

Solar panels don’t hum, buzz, or glow. They simply sit under the sun, quietly converting sunlight into electricity. You don’t see the energy these panels generate, but it’s happening whenever there is sunlight.

Behind their quiet exteriors, solar panels generate significant amounts of clean energy—powering homes, businesses, and even entire communities. Understanding how solar panels work and how much energy they produce is key to appreciating their role in our energy future.

How Many Watts Does a Solar Panel Produce?

Let’s start with the basics.

We measure solar panel performance in watts, the unit of measurement that describes the speed of energy transfer.

Terms like watts, kilowatts, or megawatts convey how much power a solar system can produce per hour, whether it’s a few panels on a roof or a large solar farm powering hundreds of homes.

Here are a couple examples of how much energy it takes to power simple household appliances:

In 2025, most residential solar panels are rated between 350 and 460 watts.

Think of watts like horsepower in a car—the higher the wattage, the more energy a panel can produce at peak performance.

To calculate how much electricity a solar panel can produce, you need to know two things:

• Panel wattage (e.g., 400W)
• Peak sun hours in your location (typically 3–6 hours/day in the U.S.)

How Much Energy Does One Solar Panel Produce?

Let’s say you install a single 400W panel and live in a region with around 4.5 peak hours of sunshine per day:

• Solar panel output per day: 400W × 4.5 hours = 1,800 Wh = 1.8 kWh/day
• Monthly output: 1.8 kWh × 30 days = 54 kWh/month
• Annual output: 1.8 kWh × 365 days = 657 kWh/year

This one solar panel generates enough energy to power a refrigerator, lighting, and other small appliances in a typical household for a year!

🏠 How Many Panels Does a House Need?

The average U.S. household uses around 875 kWh of electricity each month. That's the equivalent of 875,000 watt-hours! A kilowatt-hour (kWh) is 1,000 watts used for one hour, and it's the standard unit utility companies use to calculate your monthly energy costs.

Take a look at your utility bill—how does your usage compare? 

To offset this monthly usage entirely, the average household would need to install about 15-18 panels, each rated at around 400 watts. In sunnier areas such as Colorado, California, or Arizona, people need fewer panels because more sunlight (5-8 peak sunlight hours per day) increases daily output.

But solar panels can be expensive and not every roof has space. Does this mean that these residents are out of luck?

Not at all.

An alternative exists.

It’s called community solar.

🌎 Community Solar: Solar Made for Everyone

Community solar providers help lower barriers of entry by developing solar farms and offering portions of the development to residents, inclusive of renters and those living in apartments or condos. People of all income levels and locations can enjoy monthly financial benefits and support local renewable energy initiatives. On average, community solar participants save 5–25% on their monthly electric consumption without needing to install anything on the property or rooftop.

Community solar customers, both residents and businesses, are assigned a portion of solar panels on a nearby solar farm. The energy generated by their share is credited against their monthly utility bill, reducing the amount they owe. Then, they pay for the credited solar energy at a 5-25% discount with their community solar provider.

Even a small solar farm, typically around 1-MW in size, has the capacity to make a big difference. Made up of about 2,200 solar panels, these smaller farms can supply enough electricity for approximately 168 homes. While that might not seem like a lot at first, consider this: that's an entire neighborhood running on clean, renewable energy!

Community solar farms are typically small to midsized, ranging from 1 to 5 megawatts (MW) in capacity. However, their size can vary depending on state-level regulations and policies. Some states allow for larger installations to serve more households or businesses.

For example, Nautilus Solar’s King solar farm in North Smithfield, Rhode Island, a 15.68 MWdc community solar project, produces enough energy to power over 2,500 homes!

In 2024, Nautilus Solar produced enough energy to:

• Power over 62,000 homes
• Offset the emissions of nearly 70,000 gas-powered cars
• Generate 446 million kWh of clean energy for communities

And remember, Nautilus is just one of many solar providers in the nation. According to the U.S. Department of Energy, by June 2024, there was more than 7.87 gigawatts (GW) of community solar in the United States. Twenty-four states have enacted legislation for community solar and 20 of these states have low-to-moderate income assistance provisions as well.

This scale demonstrates how solar energy isn’t just a household solution, it’s a reliable community-wide strategy for reducing carbon emissions and lowering energy costs.

🌞Summary

A single solar panel can produce around 1.6–2.5 kWh per day, depending on location, panel type, and installation design. Multiply that by dozens, hundreds, or even thousands of panels, and you get a powerful force of clean energy—capable of supporting homes, businesses, and entire communities.

Whether you're looking to lower your monthly energy bills or simply curious about why solar energy is gaining so much attention, understanding the power behind these panels is the first step. Demand for energy is only increasing, and solar can provide value for your home, wallet, and the planet.