Load Factor
Load factor is the ratio of average demand to peak demand over a period, indicating how evenly electricity is consumed over time.
Definition
Load factor expresses how consistently electricity is used relative to its peak, calculated as average demand divided by peak demand over a given period. A high load factor indicates steady, consistent usage, while a low load factor indicates sharp, infrequent peaks against a lower baseline — often a sign of inefficient demand management.
Why It Matters
A low load factor typically signals opportunity for demand-charge savings through load shifting or staggering, since infrastructure and tariffs are often sized around peak rather than average use.
How ecolyptus Helps
ecolyptus calculates load factor per site as part of its load profile analysis, surfacing demand management opportunities.