Solar fundamentals
Industry Term

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.
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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.

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.

Related glossary terms

  • Energy Production
  • Peak Sun Hours
  • Utility Rate Escalation
  • Clipping Tax