Formula
Capacity factor (%) = annual useful output ÷ (rated thermal capacity × available hours) × 100
Equivalent full-load hours = annual output ÷ rated capacity
What the result means
Capacity factor describes utilization of rated thermal capacity across the period. It does not directly grade system efficiency, because a lightly loaded system can have a low capacity factor and still operate efficiently.
Use consistent thermal units. For a leap year, 8,784 hours may be appropriate; otherwise a full calendar year normally has 8,760 hours.