Integration of power optimizers in photovoltaic systems is standard practice in some parts of the world. Manufacturers claim that optimizers can significantly reduce electrical losses due to shading. Hence, it is important to investigate this claim and determine under what conditions it is economically warranted to utilize optimizers. In this thesis systems were modelled in PVSyst, for 6 different locations: Abu Dhabi, Borlänge, Madrid, New Delhi, Sydney, and Vienna. In each location there were 3 types of systems: a regular non-optimised system, a SolarEdge optimised system and a TIGO optimised system. Each of these systems had 10 variants where the amount of shading was varied. The system variants were simulated in PVSyst and the effect of power optimizers on electrical losses due to shading was analysed. Afterwards, payback periods were calculated for each system to determine under which conditions power optimizers are economically feasible. It was found that power optimizers significantly reduce electrical losses due to shading. In some scenarios, the losses were reduced by up to 58 %. However, in the current economic climate in 2018, it is not feasible to incorporate power optimizers, in photovoltaic systems in Abu Dhabi, New Delhi or Sydney. Furthermore, in Borlänge, Madrid, and Vienna, optimizers are only feasible if there are high levels of shading, which is not realistic for a regular photovoltaic system.