There are two factors that determine the size of solar systems: the number of panels and the watt capacity of each panel.
Output
The maximum output of the panel per hour is calculated by multiplying the number of panels by their watt capacity. For example, a system with nine 175 watt panels will produce 1.5kW per hour in sunlight. In order to determine what size system would be best for your home, it is crucial you first identify how much electricity you are currently consuming and secondly what your energy goals are. Your current electricity usage will be found on your most recent utility statement.
Your Goals
If you are looking to only substitute some of your traditional energy with solar energy, you will need to establish how much you wish to substitute and select a system that will produce the required amount of energy.
If your goal is for your home to be 100% powered by solar, you will need to select a system that will produce enough energy to cover your entire usage.
Those who are motivated by environmental benefits as a core reason for going solar, often aim to produce enough energy to feed the surplus back onto the grid. Governments make this an attractive option through feed-in-tariffs (FiT). The use of feed-in tariffs varies across the states, (link to rebates) however most involve homeowners being paid for every kilowatt hour of surplus energy they put back onto the grid: this is called a net feed-in-tariff. The ACT, however, has a gross feed-in tariff which means homeowners will receive payment for every kilowatt hour produced off their system, regardless of whether or not it was used by that household or put back onto the grid. Both of these set-ups make the economics of a solar system more attractive, as it contributes to recouping the costs of the system.
Ability to Upgrade
It is important that your goals are considered early on in the decision making process as the size of your system may restrict your ability to reach your specific requirements, should they change down the track. If, for example, you start off just wanting to subsidise your traditional energy usage but later on want to be 100% solar sufficient, your inverter may not be large enough to convert the energy from any additional panels.
Given this, one of the most important factors to consider is the capacity of the inverter. If the inverter you choose is too small, it will need to be replaced if you decide to upgrade the system and add new panels.