What cost per kWp tells you
Cost per kilowatt peak divides quoted installed price by proposed solar-array capacity. It gives two differently sized arrays one common price unit. If one quote contains 4.2 kWp and another contains 5.4 kWp, comparing only total price makes larger system look more expensive even when its quoted price per unit of peak capacity is lower.
kWp is rated peak output under standard test conditions, not annual generation and not power your home will receive at every moment. Cost per kWp normalises array size. It does not prove design quality, roof suitability, annual output, usable battery capacity, installer competence, or future savings.