The aim of this research is to investigate the effect of shading to evaluate the performance ratio (PR) of a solar power system. In order to accomplish the objective of this study, the PVsyst software was utilized to assess the impact of shading, generate an energy input/output loss diagram and determine the PR during the entire year. This work only considers shading effect due to the position of a building and the location of the PV site. The suggested method also evaluates the financial analysis of the proposed PV system, specifically focusing on the payback period (PBP) and return on investment (ROI). Two types of perspective design of the PV position for the values of tilt and azimuth have been evaluated. The value of tilt and azimuth were 15o and 0° for design-1 and design-2 with different perspective, such as North building and South building for design-1 and design-2, respectively. The result of optimization illustrated that the PR yearly levels for Designs-1 and 2, were 0.821 and 0.759, respectively. In addition, the financial analysis investigated to examine PBP and ROI, were 8.1 years with 140.5 % return rate; 8.7 years with 110 % return rate, respectively. The proposed method has been simulated and analysed for applied on the rooftop of Teaching Industrial Learning Centre building, the University of Gadjah Mada (UGM) Yogyakarta-Indonesia.