Measurement
Capacity factor is a performance metric that compares a power plant’s actual output over time to its potential output if it operated at full capacity continuously. Expressed as a percentage, it indicates how intensively an energy asset (like a solar farm or wind farm) is used. For example, a solar farm with a 20% capacity factor produces 20% of the energy it could have if it ran at full power 24/7 (accounting for night, weather, and maintenance downtime). Higher capacity factors mean more efficient utilization of the installed capacity.