In the last years, solar photovoltaic (PV) systems have had great impetus with research and demonstration projects, both in Italy and other European countries. The main problems with solar PV are the cost of solar electricity, which is still higher compared with other renewables (such as wind or biomass), due to the cost of semi-conductors, and the low conversion efficiency. However, PV panel prices are rapidly decreasing benefiting from favorable economies of scale. For instance, according to the Energy Information Administration (ETA) the US average levelized costs for plants entering service in the 2018 should be 144.3$/MW h for solar PV, whereas 111.0$/MW h for biomass and 86.6$/MW h for wind (Levelized Cost of New Generation Resources in the Annual Energy Outlook, 2013). In order to increase the electric yield of PV modules (which can be even doubled with respect to constant tilt configurations), without significantly increasing the system costs, it was decided to consider the addition of inclined mirrors at both sides of the PV modules, so as to deflect more solar rays towards them, as in Mirror-Augmented Photovoltaic (MAPV) systems. The system preserves its constructive simplicity with commercial flat PV modules even though dual axis tracker must be implemented, since MAPV systems harness mainly the direct radiation. The performance analysis of MAPV systems starts from the calculation of the global irradiation on the surface of the PV module which is a sum of the direct sunlight on it and the irradiation reflected by the mirrors. A mathematical model of a MAPV system is presented, which takes into account not only the increase of direct (or beam) radiation, due to the mirrors, but also the reduction of both the diffuse and reflected radiations due to the shadowing effect of the flat mirrors. In particular, under an isotropic sky assumption, a simplified analytical expression, applicable in the case of MAPV systems, for the sky-view factor has been developed. The deterioration in the performance of the PV system as a result of the increasing cell temperature with radiation augmentation due to mirrors has been also evaluated. Moreover, in order to provide a more realistic view of the process, the energy analysis is accompanied by the exergy analysis. Finally, in order to analyse the economics of MAPV systems, Net Present Value, Discounted Payback Period, Internal Rate of Return and Life-Cycle Costs, have been considered and compared with both a constant tilt building-integrated photovoltaic (BIPV) system and a system with a dual axis tracker. (C) 2014 Elsevier Ltd. All rights reserved.