# What is Load Factor? Its Calculation with Example

The term “Load Factor (LF)” is the energy load of a system when contrasted to its highest load or else pinnacle load for a specified time. LF is usually computed based on a daily, monthly, and annual basis. Whenever a user creates the highest usage demand on the electric power system, then he will not maintain the electricity in equal level for the entire month, although he will utilize it on various levels during the month. The amount of his electricity usage for the month when contrasted to his highest utilization for that similar month is termed as load factor or LF. The LF can be calculated by dividing the usage of his kilowatt hour of the month with the result of the maximum demand of month (or) peak demand. This article discusses what is load factor?, LF calculation, and why it is important.

**What is Load Factor?**

The term “Load Factor” defines that, it is the fraction of the average load and peak load. Here average load occurs in a given time whereas the peak load occurs during the particular time. The load factor can be calculated by using the following **Load Factor formula**.

**Load Factor = Average Load/Peak Load**

Load factor is nothing but how well we utilize the energy, and it is the calculation of electrical energy utilization throughout a given time to the utmost energy which has been used in that time. Here, the load factor plays a significant role in the generation of each unit (kWh-kilo watt-hours).

A high load factor implies power utilization is moderately consistent. Low load factor demonstrates that at times an appeal is set. To benefit that pinnacle, capacity is sitting inactive for long times, in this manner imposing higher expenses on the system. Electrical rates are structured so clients with high load factor are charged less generally for every kWh. So this procedure is called peak shaving or load balancing.

**Load Factor = Average Load X 24Hours / Peal Load X 24 Hours**

**Load Factor Calculation**

The different load factors can be calculated based on the hours in years, hours in months, hours in weeks and hours in days. For every-day load factor, time “T” is taken as 24 hrs; in the same way, for years, months and weeks the value of ‘T ‘will be changed.

- Load Factor for Daily
**=**Total kilowatt-hour throughout 24Hr of the Day / Peak Load in Kilowatt X 24Hr - Load Factor for Monthly = Total kilowatt-hour throughout the month/Peak Load in Kilowatt X 720Hrs
- Load Factor for Annual = Total kilowatt-hour throughout the year/ Peak Load in Kilowatt X 8760 hours

**Why Load Factor is Significant?**

Power Distribution Companies must take care of the clients’ pinnacle demand consistently. The interest rate structure consequently compensates clients for enhancing their load factor. Because LF (load factor) is a statement of how much electricity was really utilized contrasted with the pinnacle demand, clients can utilize a similar measure of power from one month to then onto the next and still reason their normal expense per kWh to fall as much as 40% basically by decreasing the pinnacle demand.

For example, a 25% LF in the summertime would provide a normal expense for each kWh of 13.2 pennies, while an 80% LF would provide a normal expense for each kWh of 7.9 pennies. Keep in mind; this is looking at two months in which the client utilized a similar measure of power (kWh) with various pinnacle demands.

**How to Develop Load Factor**

Bringing down the office’s pinnacle request is the essential advance to enhancing load factor and will decrease the sum paid month to month for power.

To decide the potential for enhancing load factor, examine charging records to recognize the seasons amid which the pinnacle request is the best. In general, the best interest for power happens in the summer season. While this suggests a substantial electric load is devoted to space cooling, it is not valid for each office.

It is in every case best to watch activities at the office to figure out what device might cause the pinnacle demand. When the contributing device loads have been recognized, figure out what should be possible to sequence or program occasions or procedures with the end goal to limit the synchronous task of high wattage devices.

**Potential Advantage of LP from Demand Control**

- If the load factor is > 0.75, then the benefit of demand control is a limited benefit.
- If the load factor is 0.50 to 0.75, then the benefit of demand control is a possible benefit.
- If the load factor is 0.35 to 0.50, then the benefit of demand control depends upon return.
- If the load factor is 0.20 to 0.35, then the benefit of demand control is a good potential.
- If the load factor is 0.10 to 0.20, then the benefit of demand control is excellent potential.
- If the load factor is < 0.10, then the benefit of demand control is easy money.

**LP from Demand Control**

If the ratio of your LF is >0.75 then the usage of electrical energy is very efficient. But the LF is < 0.5, and then you have demand as well as a low usage rate. The LF can be calculated by using actual kWh used, peak kW demand, number of days.

**Load Factor Example**

Calculate the daily, monthly and yearly load factor for the following.

Consider the value of total kilowatt hour = 36, 0000-kilowatt hour

Demand = 100 kilowatt

The no.of days for every month = 30 days

The number of hours for every month = 24 X 30 = 720 hours

The no.of days for every year = 365 days

The number of hours for every year = 24 X 365 = 8760 hours

Hours for every day = 24 hours

**Load Factor for Daily = **Total kilowatt-hour throughout 24Hr of the Day / Peak Load in Kilowatt X 24Hr

36, 0000/ 100 X 24 = 36000/2400 = 15

**Load Factor for Annual** =Total kilowatt-hour throughout the year/ Peak Load in Kilowatt X 8760 hours

36, 0000 X 100/100 X 8760 = 36,000/876000 = 0.041 X 100 = 4.1%

**Load Factor for Monthly** = Total kilowatt-hour throughout the month/Peak Load in Kilowatt X 720Hrs

36, 0000/100 X 30 X 24 = 0.50 X 100 = 50%

Thus, this is all about load factor and its calculations. LF is the calculation of electric energy used in a given period to the highest energy utilization of electric energy during a given period to the maximum energy which has been used throughout that period. It plays an essential task in the charge of generation for every unit. For developing this, the electric-load working in peak hours must be changed to maximum hours. Here is a question for you, what is** plant load factor**?