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Peak sun hours is one of the most important criteria to examine when considering installing a solar power system. Peak sun hours are different than total sunlight hours in a day because the strength of the radiation of the sun varies throughout the day. For example, during sunrise and sunset the solar insolation from the sun is less powerful than at noon. For a moment of sunshine to be considered a peak sun hour the intensity needs to be at least 1 kilowatt per square meter. This means that a square meter of your solar panel should be receiving 1 kilowatt of energy from the sun. This number is used because it is an amount of light that allows a solar panel to produce output efficiently and not under perform due to lack of sunlight power.

The latitude of the location is important for measuring peak sun hours. The latitude determines how much overall sunlight there will be in a day. With a given latitude, time and date, one can accurately determine when sunrise and sunset will occur. Areas with latitudes closer to the equator will have a more consistent range of solar insolation throughout the year. Whereas areas closer to the poles will have a greater variance during the summer and winter months due to their higher latitudes.

The sun moves through the sky during the day, and changes positions in the sky throughout the year as the seasons change. A fixed solar panel remains fixed in position during this movement. So, although it is effective in capturing sunlight, a 1-axis or 2-axis panel can be more efficient. A 1-axis panel tracks the sun's movement throughout the day from sunrise to sunset. In addition to that, the 2-axis panel also accounts for the movement throughout the year.

The sun is a great ball of gas that rises and sets every day that the earth rotates while in orbit around the sun. Barring any major disasters this is a very predictable occurance every day. Latitude helps predict this even more, narrowing it down to the minute for sunrise and sunset. But some things aren’t as predictable that will greatly influence the efficiency of solar panels. Weather and cloud coverage for example can greatly diminish peak sun hours on any given day. Thick storm clouds will block a high percentage of the sun's rays, resulting in lower output of your solar panels. Weather needs to be factored into deciding when to use your system, or how much output one expects to get.

In Cash the average yearly peak sun hours for a fixed tilt non-tracking solar panel mount is 5.6. This is for a fixed panel mounted at an angle that is equal to the latitude of the location for the entire year. The amount of peak sun hours increases to 7.4 hours if you are using a 1-axis panel, and to 8.1 hours if you upgrade to a 2-axis solar panel.