AbstractWe provide a comprehensive analysis of the effect of spectral albedo on photovoltaic (PV) module measurements and system model predictions. We demonstrate how to account for albedo in indoor bifacial device measurements by adjusting the applied irradiance using the scaled rear irradiance method, exemplified on fabricated silicon heterojunction (SHJ) modules. System model performance is studied using a detailed 3D finite‐element model, DUET, for fixed‐tilt and horizontal single‐axis tracked (SAT) arrays between 15 and 75°N. Spectral effects cause variations in measured SHJ module short‐circuit current up to 2% and efficiency variation up to 0.3% abs. We further demonstrate that rear‐side spectral mismatch factors (SMMs) resulting from including or omitting spectral albedo in PV system modeling vary between ±13%, while total (front+rear) SMMs vary up to 3%, depending on the deployment configuration and latitude. SAT array SMMs are weakly correlated with latitude, while fixed‐tilt array SMMs increase with latitude, driven by an increasing proportion of ground‐reflected light on the front‐side of modules. Ground‐reflections can constitute between 2% and 32% of total incident module irradiance, with notably high (>10%) contributions for fixed‐tilt arrays at high latitude. Effects of spectral albedo are most significant for: (1) fixed‐tilt deployments at high latitudes, (2) wide bandgap technologies such as perovskite and cadmium telluride cells, (3) albedos which vary steeply over the technology's absorption range, and (4) high albedo ground covers. Overall, we demonstrate that omitting spectral albedo effects can result in PV measurement and system‐level modeling uncertainties on the order of several percent in these cases.