A net carbohydrate and protein system was used to develop model diets for lactating dairy cattle with various protein solubilities in the alfalfa silage component of the diet. The objective was to determine the level to which alfalfa silage could be used to replace supplemental protein sources as the silage protein solubility decreased and to estimate the value of silage treatments needed to reduce protein solubility. Four cow groups were considered: early lactation multiparous cows, primiparous cows, midlactation cows, and late lactation cows. Diets were balanced for metabolizable protein, metabolizable energy, and ammonia and peptides for rumen bacteria; limits on DMI and effective NDF were enforced. Lower protein solubility was predicted to increase the yield of bacteria per unit of alfalfa silage DM and the yield of metabolizable protein per unit of alfalfa silage CP. Because of reduced protein supplements, diet costs were decreased. The savings per unit of silage in these rations increased as alfalfa silage protein solubility decreased. For example, with a reduction in solubility from 61 to 51% of CP, the savings ranged from $2.96 to $3.26/tonne of silage across the four cow groups. The value of acid treatment of silage needed to effect these reductions exhibited diminishing returns as application rate increased and appeared to be most cost effective when used on high quality alfalfa fed to high producing cows with application rates less than 2 kg/tonne. Management practices that reduce silage temperatures were predicted to save $.50 to $1.50/tonne of silage when the diets were balanced to account for protein degradability.