Load Factor Calculator

Load factor, in essence, means efficiency. It is the ratio of actual kilowatt-hours used in a given period, divided by the total possible kilowatt-hours that could have been used in the same period, at the peak kW level established by the customer during the billing period.

A high load factor is “a good thing,” and a low load factor is a “bad thing.” A low load factor means that you are using electricity inefficiently relative to what you could be if you were controlling your peak demand.

Load factor is calculated using a few simple numbers from your electric bill.

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How to Improve Your Load Factor

Lowering a facility’s peak demand is the primary step to improving load factor and will reduce the amount paid monthly for electricity.

To determine the potential for improving load factor, analyze billing records to identify the seasons during which the peak demand is the greatest. In general, the greatest demand for electricity in Naperville occurs on hot days in the summer. While this implies that a large electric load is dedicated to space cooling, it is not necessarily true for every facility. It is always best to observe operations at the facility to determine what equipment may be causing the peak demand.

Once the contributing equipment loads have been identified, determine what can be done to sequence or schedule events or processes in order to minimize the simultaneous operation of high wattage equipment.