5 kilowatts (5 kW) used to be the standard size for residential solar systems, but with prices continuing to fall in 2026, the same budget can now support a higher-capacity system.

Grid-Connected Only: Stable Income Model

In this model, the system functions like a small power plant, feeding electricity directly into the grid to generate revenue. A 5 kW system produces approximately 5,100 to 7,300 kWh annually. This model has a low entry barrier and minimal risk, making it suitable for households with low daytime electricity consumption.

Grid-Connected + Self-Consumption: Maximum Savings

In this model, generated electricity is prioritized for household use, with any surplus fed into the grid. The return consists of “saved electricity costs” plus “revenue from selling electricity.” System design is more complex and requires the installation of a bidirectional meter; it is suitable for households with high daytime electricity demand.

Off-Grid (with Energy Storage): Self-Sufficient Power

This model operates completely independent of the grid and requires a high-capacity battery, resulting in relatively higher costs. It is primarily used in remote, off-grid areas where cost recovery is not the primary objective; its value lies in achieving round-the-clock energy independence.