The ratio of actual output to maximum possible output over a time period, expressed as a percentage. Nuclear plants achieve 90%+ capacity factors (running nearly constantly). Wind turbines typically achieve 30-40% (generating only when wind blows). Solar panels achieve 20-25% (generating only during daylight). This metric explains why a 1 GW solar farm doesn't replace a 1 GW nuclear plant.
Discussed in Chapter 6 of This Is Server Country