The building sector being energy-intensive necessitates the transition to zero energy buildings by employing renewable strategies. The potential for electricity generation via solar energy is immense in tropical regions such as India due to the abundant availability of solar radiation. Building-integrated photovoltaics (BIPV) emerge as a promising solution for utilizing unused spaces, especially when installation areas are limited. However, the primary challenge associated with energy generation is the shading caused by the nearby buildings and other features which limits the energy generation potential. This study investigates the impact of different shading scenarios on Building Integrated Photovoltaics (BIPV) energy generation in low-rise and high-rise buildings. The study employs a systematic approach involving development of possible shading scenarios, modelling and simulation of these scenarios for the assessment of its photovoltaic (PV) generation. The check against building energy demand facilitates the assessment of Nearly Zero Energy Building (NZEB) potentiality. Irradiation analysis is conducted to quantify solar gain loss due to shading compared to its base/unshaded case. Through a comparative assessment involving the study of irradiance loss due to shading and BIPV energy generation, the study evaluates the viability of BIPV systems for achieving net-zero energy status in low-rise and high-rise structures. With shading, high-rise buildings gives suboptimal results in achieving the net-zero status, while the shaded scenarios of low-rise buildings cover 20–40% of building energy demand. The findings offer valuable insights on efficient utilization of BIPV technology and establish a foundation for informed decision making in sustainable building design.