The paper investigates the system efficiency for power distribution in residential localities considering daily load variations. Relevant system modeling is presented. A mathematical model is devised, which is based on the data from the Energy Information Administration (EIA), USA, for analysis. The results reveal that the DC distribution system can present an equivalent or even better efficiency compared to the AC distribution network with an efficiency advantage of 2.3%, averaged over a day. Furthermore, the distribution systems are compared under various capacities of solar PV accounting for the effect of variation in solar irradiation over time.