This paper describes the construction and the performance of a distributed power generating system of photovoltaics (PV) using solar energy estimation. Instead of conventional batteries a new storage device, called energy capacitor system (ECaSS), is used for its various advantages. A procedure is described to estimate the PV output power by calculating solar radiation. To calculate the daily insolation, Hottel's equation and Liu-Jordan's equation have been used with some modification. The accuracy of the procedure is verified by comparing the calculated solar radiation with the practically measured one. To apply the procedure even in cloudy/rainy weather, the characteristic of the PV output in different weather conditions has been studied using 1-day-ahead weather forecasts. With an aim to set the optimum amount of buy power, a simulation program has been developed. The system is being operated, in optimal economic mode in different weather conditions. The financial benefit and load-leveling capacity of the system have been studied and presented here. It was found that the system provides an excellent economic benefit for nonflat price of electricity and load-leveling facility with a good overall efficiency.