The estimation of diffuse irradiance that impinges on a window or photovoltaic panel is of major importance for the determination of their performance. The present paper introduces the concept of angular shading factors (ASF) for the calculation of time-varying diffuse irradiances to be performed without the need to repeat time consuming intereflection calculations at every time step. For the calculation of ASF, a Monte Carlo backward ray tracing technique was used. As a result, geometrically complex scenes consisting of surfaces with diffuse and specular reflectances, while transparent and translucent surfaces can be modeled as well. After that, the calculation of diffuse irradiance can be performed in a dynamic way, by taking into consideration the sky radiance distribution variability. (C) 2002 Elsevier Science Ltd. All rights reserved.