Presented paper addresses the problem of proper large-scale integration of photovoltaic (PV) systems in urban area distribution network (DN). A methodology for minimization of annual energy losses in DN by optimal placement of PV systems, which simultaneously considers rooftop PV potential and time dependent network operation, is presented. Optimal reactive power generation of PV systems and optimal setting of on-load tap changer (OLTC) equipped transformer in secondary substation are determined as well. Furthermore, proposed methodology enables evaluation of the impact of OLTC equipped transformer on the share of PV installation that urban DN can accommodate. Proposed methodology is based on the optimization tool called differential evolution, with the objective function set to minimize network’s annual energy losses, while preventing the voltage violations and thermal overloading of lines. Results of the case study performed on a real urban low voltage distribution network, with consideration of different scenarios of OLTC operation are presented. The results indicate that simultaneous consideration of chosen variables yields greater benefits to DN operation in terms of reduction of annual energy losses and greater PV penetration.