This paper discusses the practical factors that may influence the inverter sizing strategy. Effects of various factors are studied separately by isolating parameters in the simulations. These factors include irradiance and temperature conditions of the photovoltaic (PV) installation location, PV incentives, electricity rates, and inverter intrinsic parameters such as overload protection schemes and efficiency curves. Specifically, examples of nine different geographic locations in the US are simulated and discussed with realistic parameters to show that the optimum inverter size varies notably by location and context. (C) 2012 Elsevier Ltd. All rights reserved.