What is electricity load factor?
Load factor is average electricity demand divided by peak demand over the same period. The government glossary uses this average-to-maximum relationship for system load factor [S1]. In an assumed example, 20 kW average divided by 80 kW peak gives 25%. Your site's underlying demand profile is still needed to assess charging or batteries. Checked October 2026.
What does load factor mean for your site?
Load factor is average demand divided by peak demand over a stated period, usually expressed as a percentage. The government energy glossary describes the average-to-maximum relationship for system load factor [S1].
For your site, it helps distinguish steady use from occasional heavy demand. A charger used in short bursts and a cold store running steadily can have different ratios even if they consume equal energy. That is a comparison of assumed operating patterns, not a benchmark for either sector.
How do you calculate load factor?
An illustration, not a quote: assume a site uses 480 kilowatt-hours (kWh) in 24 hours and its highest measured demand is 80 kilowatts (kW). kWh measures energy; kW measures power.
- Average demand = 480 ÷ 24 = 20 kW.
- Load factor = 20 ÷ 80 × 100 = 25%.
Use matching dates and a consistent peak measurement interval. Do not substitute the fuse rating for measured peak demand. The denominator is maximum demand, rather than the equipment’s installed capacity [S1].
Why does the shape of demand matter?
For battery sizing, request the peak height, its duration and opportunities to recharge. The ratio alone cannot tell you those inputs. For charging, government guidance identifies slower overnight charging and changes to existing machinery use as options when assessing connection needs [S2].
For network charges, check your agreed capacity and actual bill components with your supplier. Improving a ratio is not itself a calculated bill reduction. Read load profiles, half-hourly metering and network charges and business electricity price data.
Next step
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Common questions
Does a monthly electricity total show when you used the power?
No. Divide energy by elapsed hours to find average demand, then obtain interval records to locate peaks; load factor compares average and maximum demand [S1].
Can you shift charging away from a building peak?
Government guidance suggests overnight charging and reviewing machinery schedules to reduce demand [S2].
Does load factor identify your always-on equipment?
No. It is an aggregate ratio [S1]. Request a demand trace and equipment schedule to investigate the overnight baseline.
Does the ratio tell you how long a peak lasts?
No. Average divided by maximum contains no duration record; retain the underlying interval data [S1].
Does a low load factor mean you have permission to add chargers?
No. Confirm the connection requirements with your network operator; government guidance recommends early discussion for workplace installations [S2].
Ask about your site
Sources
- Digest of UK Energy Statistics, glossary of load factors, Department for Business, Energy and Industrial Strategy,Last checked 19 October 2026
- Connecting electric vehicle chargepoints to the electricity network, Office for Zero Emission Vehicles,Last checked 19 October 2026