Recent advancements in residential solar electricity have revolutionized sustainable development. This paper introduces a methodology leveraging machine learning to forecast solar panels’ power output based on weather and air pollution parameters, along with an automated model for fault detection. Innovations in high-efficiency solar panels and advanced energy storage systems ensure reliable electricity supply. Smart inverters and grid-tied systems enhance energy management. Government incentives and decreasing installation costs have increased solar power accessibility. The proposed methodology, utilizing machine learning techniques, achieved an R-squared value of 0.95 and a Mean Squared Error of 0.02 in forecasting solar panel power output, demonstrating high accuracy in predicting energy production under varying environmental conditions. By improving operational efficiency and anticipating power output, this approach not only reduces carbon footprints but also promotes energy independence, contributing to the global transition towards sustainability.