The Iraqi Kurdistan region possesses abundant solar energy potential, yet its energy supply relies heavily on non-renewable fossil fuels. As energy demand continues to surge, exploring alternative generation methods is imperative. In this modern era, photovoltaic systems are gaining widespread recognition for their robustness, sustainability, and practicality. Evaluating the performance of these systems is crucial for understanding various operational aspects. This study assesses the effectiveness of a 5-kW grid-connected photovoltaic system strategically installed on rooftops of residential buildings in Kalar City, Iraq. The PVsyst software, a widely used simulation tool for predicting energy output and refining system configurations, is utilized for the analysis. The software simulates the proposed PV system to predict its energy production performance, aiding in selecting the appropriate solar panel size and inverter model to meet the required load demand. The simulation results reveal that the proposed system has the potential to generate 8,814 MWh of electricity annually. Performance ratio analysis highlights December's highest PR at 90.9%, while April records the lowest PR at 79.9%, with an annual average PR of 84.5%. This performance metric underscores the system's efficiency and reliability, with superior performance during the winter months and slightly reduced performance in the summer. The study underscores the region's solar energy potential, aligning with the Kurdistan Regional Government's goals of promoting clean energy. Additionally, it demonstrates that the PV system offers a practical solution for Kalar City to meet its growing energy demands.