Load Factor Reference
Electrical / utility load factor and demand factor — definitions and why it matters for sizing.
Reference
Definitions
- Load factor LF
- = average load / peak load (over a period)
- Demand factor
- = peak demand / connected load
- Diversity factor
- = sum of individual peaks / coincident system peak
- Utilization factor
- = peak demand / rated capacity
- Capacity factor
- = annual energy / (rated power × 8 760 h)
Typical values
| Customer type | Load factor |
|---|---|
| Residential | 20–40% |
| Commercial (office) | 40–60% |
| Industrial (continuous) | 70–90% |
| Data center | 60–80% |
| Hospital | 70–90% |
| Steel mill | 80–95% |
Why it matters
- Utilities size infrastructure for peak, but revenue comes from energy — higher LF = better economics.
- Low load factor suggests demand management / storage opportunities.
- For solar PV, capacity factor is typically 15–25% (seasonal + diurnal + weather).
- Wind: 25–45%. Onshore nuclear: 85–95%. Fossil peakers: < 30%.
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