Load Factor

Load factor describes how consistently a building uses electricity over time by comparing average power usage to peak demand. Buildings with low load factors tend to have sharp spikes in electricity demand, while buildings with higher load factors use power more evenly throughout the day. Because demand charges are based on peak demand rather than total energy use, load factor plays an important role in determining commercial electricity costs. The articles in this section explain how load factor is calculated, how it affects electricity bills, and why understanding load patterns can reveal opportunities to reduce demand charges.