An extensive set of physical and optical measurements is utilized to characterize the processes and quantify parameters that contribute to the variability of solar transmission, sea surface albedo, and radiant heating rate (RHR). This study is among the first to utilize multidisciplinary observations coupled with radiative transfer simulations to investigate the impact of optical properties on solar transmission, albedo, and heating in nearshore coastal waters. The data were collected from a shallow-water coastal mooring as part of the Hyperspectral Coastal Ocean Dynamics Experiment (HyCODE) in summer 2001. Over the 41-day time series, the average loss in solar radiation was 274 W m-2 for mean surface radiation of 365 W m-2 (average solar transmission of 21%). Quantitative coherence and principle component analyses suggest that cloud cover, chlorophyll concentration (Chl), and colored dissolved organic matter (CDOM) have the greatest impacts on solar transmission variability on timescales of ~1 week. Radiative transfer simulations show that Chl, absorption, and attenuation have the most significant impact on solar transmission, whereas solar angle and cloud cover greatly influence albedo.