The capacity utilisation factor is defined as the ratio of the actual electrical energy produced to the maximum energy that could be produced in a given time frame.

The capacity utilisation factor (CUF) for a solar photovoltaic (SPV) project is the ratio of the actual energy generated by the SPV project over the course of the year to the equivalent energy output at its rated capacity over the same time period. The amount of solar radiation, expressed in kWh/sq m/day, and the number of clear, sunny days affect how much energy an SPV project can produce. Solar cells’ output is expressed in units of Wp (Watt Peak), which is the nominal power under STC (1000 W/m2, 250 C, 1.5 AM).

What are the Benefits of Capacity Utilisation Factor?

It is a more appealing option for investors because of its ease of evaluation and direct association with revenue. Through this, it becomes much more appealing to investors, especially for various Solar Farms.

How is the Capacity Utilisation Factor Relevant to Solar Farms?

A measure of how well a plant is exploited is the capacity utilisation factor (CUF). This is crucial because the investor wants to get the most value out of the PV plant, which is an asset with a finite life based on an intermittent energy source.

Solar farms require a substantial investment, making it advantageous for investors to compute the CUF for a solar farm, which is directly correlated with the potential revenue from the solar farm.

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Elliot is a passionate environmentalist and blogger who has dedicated his life to spreading awareness about conservation, green energy, and renewable energy. With a background in environmental science, he has a deep understanding of the issues facing our planet and is committed to educating others on how they can make a difference.

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