To calculate the heat generated by a resistance wire, one must consider the wattage per square inch of the heating element and the efficiency of heat transfer to the target object. Key factors include the medium separating the coil and the object, which in this case is air, and the nature of the object being heated. The goal is to design an infrared heating panel that can heat epoxy to 350°F from a distance of 5 inches, with the coil potentially reaching 600°F to account for heat losses. The project involves using nickel-chromium wire, with specific length and resistance to be determined, ultimately aiming to save costs on commercial heating solutions. Understanding these principles will aid in effectively designing the heating panel.