One of the major challenges today is assessing the suitability of PV (photovoltaic) systems' installations on buildings' roofs regarding the received solar irradiance. The availability of aerial laser-scanning, namely LiDAR (Light Detection And Ranging), means that assessment can be performed automatically over large-scale urban areas in high accuracy by considering surfaces' topographies, long-term direct and diffuse irradiance measurements, and influences of shadowing. The solar potential metric was introduced for this purpose, however it fails to provide any insights into the production of electrical energy by a specific PV system. Hence, the PV potential metric can be used that integrates received instantaneous irradiance which is then multiplied by the PV system's efficiency characteristics. Many existing PV potential metrics over LiDAR data consider the PV modules' efficiencies to be constant, when in reality they are nonlinear. This paper presents a novel PV potential estimation over LiDAR data, where the PV modules' and solar inverter's nonlinear efficiency characteristics are approximated by modelled functions. The estimated electrical energy production from buildings' roofs within an urban area was extensively analysed by comparing the constant and nonlinear efficiency characteristics of different PV module types and solar inverters. The obtained results were confirmed through measurements performed on an existing PV system. (C) 2014 Elsevier Ltd. All rights reserved.