Capacity Factor
Capacity factor is the ratio of actual energy produced over time to the energy a system would produce if it ran at full rated power continuously.
What does Capacity Factor mean?
Capacity factor is the ratio of actual energy produced over time to the energy a system would produce if it ran at full rated power continuously.
How is capacity factor used in solar modeling?
Solar systems do not produce at nameplate power all day and night. Capacity factor helps estimate long-term energy output and compare production assumptions across projects or locations. It's calculated with the following:
Capacity Factor = (Actual Energy Generated) / (Theoretical Maximum Energy) and represented as a percentage.
where Theoretical Maximum Energy = (Solar AC power rating in kW) x (8760 hours)
How it relates to Tigo
Tigo’s Microinverter Tax examples use production assumptions to estimate the value of clipping and conversion losses over a system lifetime. Capacity factor is also an input into the Tigo Optimization Benefits calculator.
Related glossary terms
- Energy Production
- Peak Sun Hours
- Utility Rate Escalation
- Clipping Tax