Load factor is the single most-important metric suppliers use to price your commercial supply rate. The formula: load factor equals average kW divided by peak kW. Above 65 percent is a flat profile — supplier hedging is cheap and rates are aggressive. Below 35 percent is spiky — supplier hedging is expensive and rates reflect it. Improving load factor by shifting production overnight or staggering equipment can cut supply rates by 8 to 14 percent.
The load factor formula
Load factor = (total kWh consumed in the period) / (peak kW × hours in the period). A facility consuming 500,000 kWh in a month with a 1,200 kW peak has load factor of 500,000 / (1,200 × 720) = 57.9 percent.
Most commercial accounts run 35 to 65 percent load factor. Data centers run 85 to 95 percent (always-on). Retail stores run 25 to 45 percent (open hours only).
How to improve load factor
Shift production overnight if processes allow. A factory running second-shift batch operations boosts load factor without changing total kWh.
Stagger major equipment startup so compressors, chillers, and motors do not all peak simultaneously. Install battery storage to flatten peaks.
Lock the rate before the next reset.
Seenra runs the supplier shortlist in 5 minutes. No credit pull, no on-site visit, no service interruption. Forever free for households.
Get my fixed-rate quote →Common questions
Quick answers from the editorial desk
How do I calculate my load factor?
Why do suppliers care about load factor?
Can shifting overnight help even if I have the same kWh?
How does shifting production affect my contract?
Further reading