Product integrated photovoltaic (PIPV) systems, can be severely impacted by shading in the surroundings as their collector area is typically small. To ensure the proper functioning of these devices, methodologies to estimate solar irradiance and near shading accurately and efficiently in built up locations are needed. Digital Surface Models (DSM) have proven to be a good alternative to estimate solar irradiance on building surfaces and urban areas. However, high-accuracy DSM are scarce, with limited availability and tend to show the maximum elevation of the obstructions elements disregarding their real shape. We propose a methodology with onsite LiDAR measurements to improve the accuracy to which the solar irradiance can be estimated in urban environments. This methodology produces horizon matrices which can reduce the estimated irradiance’s RMSE by 25-40% compared to fisheye sky imaging methodologies, and by 45-75% to the ones obtained with low-resolution DSMs. However, at locations with low shading profiles the differences are negligible