Abstract-Countries with considerable PhotoVoltaic (PV) installations are facing a challenge of overloading their power grid during peak-power production hours if the power infrastructure remains the same. To address this, regulations have been imposed on PV systems, where more active power control should be flexibly performed. As an advanced control strategy, the Absolute Active Power Control (AAPC) can effectively solve the overloading issues by limiting the maximum possible PV power to a certain level (i.e., the power limitation), and also benefit the inverter reliability due to the reduction in the thermal loading of the power devices. However, its feasibility is challenged by the associated energy losses. An increase of the inverter lifetime and a reduction of the energy yield can alter the cost of energy, demanding an optimization of the power limitation. Therefore, aiming at minimizing the Levelized Cost Of Energy (LCOE), the power limit is optimized for the AAPC strategy in this paper. The optimization method is demonstrated on a 3-kW singlephase PV system considering a real-field mission profile (i.e., solar irradiance and ambient temperature). The optimization results have revealed that superior performance in terms of LCOE and energy production can be obtained by enabling the AAPC strategy, compared to the conventional PV inverter operating only in the maximum power point tracking mode. In the presented case study, the minimum of the LCOE is achieved for the PV system when the power limit is optimized to a certain level of the designed maximum feed-in power (i.e., 3-kW). In addition, the LCOE-based analysis method can be used in the design of PV inverters considering long-term mission profiles.