A new model has been developed to determine the optimal tilt angle for PV panels and solar collectors on a yearly, seasonal, and monthly basis. The model estimates the diffusion component of solar radiation using Orgill and Holland's model, which relates the diffusion fraction of solar radiation to the sky clearness index. Empirical data on the clearness index is used to derive the relationship between the diffusion and direct components of solar radiation at any global latitude on any given day of the year. By maximizing the total amount of diffused and direct radiation, the optimal tilt angle for each month, season, and year is determined relative to the latitude angle. The model is programmed in MATLAB and is freely available for download from the MATLAB file exchange website. The model shows that small deviations from the optimal inclination angle have only a minor effect on overall system yield. The monthly optimal tilt angles predicted by the model are consistent with experimental data and other published model predictions for various locations around the globe. Importantly, unlike some other models, the present model does not predict negative optimal inclination angles for small northern hemisphere latitudes or vice versa.