This document discusses a method for estimating solar radiation using digital image processing of sky camera images. Sky camera images are divided into three areas and pixel values from clear and cloudy day images are analyzed. Correlations between pixel values and solar altitude are used to create databases for clear and cloudy conditions. Beam, diffuse, and global radiation values are estimated based on averages of pixel values from the three areas and compared to measured values, achieving reasonably low error rates. The method provides information that can improve solar plant performance and operation based on meteorological conditions.