The paper presents methods of determining the capacity and installation positions of regenerative inverters installed in DC 1500V electric railway system. We suggested a method that approximates using parameters related to substations where regenerative inverters are installed, railway lines and operating motor cars, and another that calculates using regenerative power obtained from Train performance Simulation (TPS) and Power Flow Simulation (PFS). We carried out TPS and PFS for Seoul Subway Line $5{sim}8$, calculating regenerative power and determining substations where regenerative inverters would be installed and the optimal capacity and number of inverters to be installed.