Top Five Factors Determining Solar Energy Potential

One of the most confusing things about solar energy is the mysterious link between the installed power and the actual energy output. To put it another way, if you put a 200-watt solar panel on your roof how many watt-hours of electricity would you produce in a day or throughout the whole year? It is very important to understand that the performance of solar panels is location specific. The same 200-watt panel will produce very different amounts of energy if we install it in Seattle, WA and then take it down to Phoenix, AZ. But the real question is: what causes this difference and how can we set realistic expectations about solar energy potential? Understanding your solar potential is critical to determining if makes sense to go solar.

 A gentle introduction to solar radiation

Solar radiation, or insolation, is the “fuel” of all solar energy systems. The performance of solar photovoltaic systems which generate electricity and solar thermal systems which produce hot water all depend on the availability and intensity of solar radiation.

For all practical purposes, solar radiation at the top of the atmosphere can be considered a constant. However, the precise location of a site on Earth and atmospheric effects drastically change the level of radiation at the surface of Earth.

Now let’s have a quick look at the top five factors that affect your solar energy potential.


1. Latitude

Due to Earth’s spherical shape, the solar rays have more intensity around the equatorial regions. As we move further away from the equator, the energy density decreases as the solar rays are distributed around a larger geographical region. When it comes to solar energy, it’s a definite advantage to be close to the equator.



2. Cloud cover

Clouds have a big impact on the amount of solar radiation reaching the surface of Earth. They reflect and absorb a significant part of the incoming solar radiation. Therefore, two sites at the same latitude may have drastically different solar radiation levels depending on the cloud cover. On average, clouds absorb or scatter about 20% of the incoming solar radiation.


aerosols3. Aerosols

Aerosols are small particles that float in the atmosphere. By absorbing or diffracting solar radiation, they can act as a filter and decrease the level of solar radiation reaching the surface. Atmospheric pollution and sand storms also have similar impact. While aerosols degrade the performance of photovoltaic systems, their impact is more severe on the performance of concentrating solar applications and solar thermal systems.

elevation4. Elevation

The distance solar rays have to travel through the atmosphere is less at higher altitudes. Therefore there is less atmospheric absorption, and consequently, more solar radiation as the elevation increases.


shadeonpanel5. Shading

The immediate surroundings of a project site also has a big impact on the level of solar radiation reaching solar energy systems. Vegetation, buildings, even certain landscape features such as hills can block incoming radiation and cast a shadow, drastically reducing the usable solar radiation.

Summing up

If your solar energy project happens to be located near the equator, in a relatively arid region away from urban pollution, and if it’s quite a bit above sea level with little or no shade around it, you would be the winner of the global solar radiation lottery. Why not Discover solar energy where you live?

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4 Replies to “Top Five Factors Determining Solar Energy Potential”

  1. Hi Ozgur,

    I have one doubt. Once that I know my potential, 6.65 kWh/m2 per day, how do I know how much energy will produce a panel of 100 Wp?

    I think 1Wp means 1Wh when the potential is of 1 Wh/m2, am I right? So, I just have to multiply 100[Wp] times 6650? I know there are losses, but I only want a strong estimation.



  2. Hi Diego,

    Thank you for your question. “Wp”, or watt-peak, refers to the installed capacity. For example, a 1000 Wp system would consist of 10 of the 100 Wp panels that you mention in your comment. As you know, the same panel would produce different amounts of electricity depending on the location.

    The potential that you mentioned for your site (6.65 kWh/m2 per day), is not very clear for me. You would have the daily insolation value in W/m2 or kWh/m2 units, and the figure you mentioned seems very low.

    May I suggest that you go to Sunmetrix Discover ( ), select your site, and then go to the “Energy” tab. If you enter 0.1 in the “Power Capacity” form field and click on “Go”, this would give you the electricity output of a 100 Wp system.

    I hope this gives you the answer that you needed. If not, please share a few more details, and I’ll do my best to give you more information.

    Thanks for using Sunmetrix!


  3. Very informative post! There are a ton of factors to keep in mind when deciding on solar panels. However, in my opinion, solar panels are an investment piece worth looking into, especially if you live within an area where these environmental factors don’t affect you. Thanks for sharing!

  4. Hi Sales

    Our Institution acting with full responsibility as a potential buyer of your extensive line of products and services hereby submit a Request for quote per the product(s)below:

    Between 300 and 320 wat solar panels——–qty 300 unit
    250 AH 12V MAG Batteries
    Kindly get back to me with a quote on any of the above you can supply.
    Note: In addition to the above, Our Institution standard Payment terms: Net 30 days from the date of supply with the supplier’s Invoice.

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    University of Massachusetts
    Mass Venture Center – Suite 334
    100 Venture Way Hadley, MA 01035-9430
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