Why are shadows so bright in closed interiors?

I know how to fix this by enabling lumen, distance fields shadows, or raytracing, but I want another solution. I have dynamic light in my scene, and I want to save fps. That is why I have set Shadow method to shadow, reflection to NONE, global illumination to NONE, and turned off generating distance fields, because they caused black artifacts on my mesh. Now the scene looks to… Unrealistic. How may i make dark spots darker, without raising global intensity?

Likely you’re seeing the skylight leaking through your meshes and keeping the brightness high in shadowed areas.

Your options are:

-Baked/static lighting
-Trying to crank up SSAO to try to compensate for it (might be able to use the better GTAO if you’re using UE5)
-Use DFAO (this requires constructing scenes with good mesh distance fields, and likely means breaking up meshes, creating closed meshes, and cranking up the resolution in places).
-Try SSGI, but having to deal with screen space artifacts.
-Lumen

  1. You could bake the whole scene with CPU/GPU lightmass.
  2. Have you tried an “PostProccessVolume”, in there you can change almost everything regarding effects/colors.

If you want performance and doesn’t use anything like GI or Reflections you could look into Forward shading. It’s has less support, like MSAA as Anti-Aliasing and can be very good in most scenarios.

I can’t use baked lighting. I have tried setting screenspace illumination, but it doesnt seemto fix much. what is GTAO exactly? And where do I change SSAO parameters? Lumen works fine, but I don’t want to use it just because it’s too expecive for an indie game if I enable raytracing, and without it lumen looks very akward

Looks like you’ve discovered one of the many problems lumen and raytracing set out to solve. Without global illumination, something is either in shadow or not. This leads to objects in shadow looking very flat.
The fix before global illumination is to precompute ambient occlusion maps, or use screen space ambient occlusion to darken the nooks.
You’re chasing a golden goose egg if you want a non-static, high performance way to add depth to shadowed areas without raytracing.

Well, I want to set it to at least the level of ue4, so not much I am asking for

None of the UE4 lighting features have been removed. They used the methods myself and others in the thread have mentioned. So if that’s your goal, you should have all the keywords to find what you need.
Most realtime AO settings are found in the post-process volume.