Energy plays a very important role in Egypt’s economic development, but the country has a gap between its produced energy and the demand of its growing population. Utilization of solar power systems in Egypt could help the country to close this gap and fulfil its national and international obligations. However, since 1980, the focus in Egypt has been on large-scale industrial solar projects. Limited attention is given to smaller systems for typical residential buildings. The aim of this research, therefore, is to highlight the potential of small residential solar systems (SRSS) in Egypt. With the huge number of residential buildings accommodating more than 115 million Egyptians, SRSS could be the unearthed gem of a sustainable source of energy in Egypt. The geographical location of Egypt and climate were used to generate solar data using the Global Solar Atlas application. The amounts of monthly and annual solar irradiations were calculated and analysed to decide the best orientation of the system (facing east, west, north, and south), identify the optimum tilt angle of the system, and determine the size of the solar panels. A case study was used to illustrate the procedures of designing SRSS for a typical residential building in Egypt. The results showed that a 26 kWp SRSS oriented facing the east with an optimum tilt angle between 15° and 30° could produce an annual total output of electricity more than the annual demand of the occupants of the studied residential building. Such a system would fit easily on the roof of the building. It was concluded that the installation of SRSS in Egypt could help the country meet the demand of its ever-increasing population if properly regulated, financed, and managed. It is recommended that Egypt develop and implement policies to make installations of SRSS an attractive choice among homeowners and investors by introducing encouraging incentives and creating a competitive market with affordable SRSS.