Challenges and Opportunities in ILR Selection for Photovoltaic System: Evaluation in Brazilian Cities

The sizing of photovoltaic (PV) systems has been a concern since the 1990s, particularly with the trend of inverter undersizing as PV module prices decrease. While many studies have assessed the behavior of AC energy and economic parameters with varying Inverter Load Ratios (ILRs), they often neglect the impact of degradation on system lifetime or fail to analyze how it influences ILR selection in depth. This study examines the relationship between DC loss curves and ILRs, their evolution over time, and their effects on efficiency and Final Yield. Simulating solar resources in 27 Brazilian cities, it evaluates clipping losses and optimal ILR values ranging from 0.8 to 2.0 for 28 recent inverters. The research aims to identify the ILR that minimizes the Levelized Cost of Energy (LCOE) while maximizing Final Yield, revealing variations in optimal ILR ranges across different inverter–city combinations. The optimal ILR was between 1.1 and 1.3 for modern medium- and high-power inverters, while low-power inverters had a range of up to 1.8. The findings highlight that practical ILR considerations can overlook real-world challenges, leaving the system’s full potential untapped.