# What is a load factor incentive on an HT electricity bill and how do I earn it?

Canonical: https://senseible.earth/answers/load-factor-incentive-on-ht-electricity-bill

Some state tariffs give a rebate when load factor is high: units used divided by maximum demand times hours in the month. Running steadily across shifts, instead of in peaks, raises it. It lowers cost; emissions still follow kWh.

## Work out your load factor

1. Monthly kWh from the bill.
2. Recorded maximum demand in kVA, times power factor for kW.
3. Load factor = kWh ÷ (kW × hours in the month).

## Check your tariff

Thresholds and rebate rates differ by state and year. Read the current tariff order for your category.

## Example: 180,000 kWh in a 30 day month

- Maximum demand 400 kW
- 180,000 ÷ (400 × 720) = 62.5% load factor

## What Senseible does here

Senseible reads electricity bills, including kVAh, demand and solar export lines, into dated records with the units, factor and year behind every Scope 2 figure.

- [Maximum demand charges](https://senseible.earth/answers/maximum-demand-charges-peak-shaving)
- [Time of day tariff](https://senseible.earth/answers/time-of-day-electricity-tariff-for-factories)
- [Reduce contract demand?](https://senseible.earth/answers/should-i-reduce-contract-demand-on-ht-bill)

Sources: [Bureau of Energy Efficiency, energy efficiency guides](https://beeindia.gov.in), [GHG Protocol Scope 2 Guidance](https://ghgprotocol.org/scope-2-guidance)

Last reviewed 2026-10-22.