Voltage drop describes how the energy supplied by a voltage source is reduced as electric current moves through the passive elements (elements that do not supply voltage) of an electrical circuit. The voltage drop across the internal resistance of the source, across conductors, across contacts, and across connectors is undesirable because some of the energy supplied is lost (dissipated). The voltage drop across the electrical load and across other active circuit elements is essential for supply of energy and so is not undesirable.
For example, an electric space heater may have a resistance of ten ohms, and the wires which supply it may have a resistance of 0.2 ohms, about 2% of the total circuit resistance. This means that approximately 2% of the supplied voltage is lost in the wire itself. An excessive voltage drop may result in unsatisfactory performance of the space heater, and overheating of the wires and connections.
National and local electrical codes may set guidelines for the maximum voltage drop allowed in electrical wiring to ensure efficiency of distribution and proper operation of electrical equipment. The maximum permitted voltage drop varies from one country to another. In electronic design and power transmission, various techniques are employed to compensate for the effect of voltage drop on long circuits or where voltage levels must be accurately maintained. The simplest way to reduce voltage drop is to increase the diameter of the conductor between the source and the load, which lowers the overall resistance. In power distribution systems, a given amount of power can be transmitted with less voltage drop if a higher voltage is used. More sophisticated techniques use active elements to compensate for excessive voltage drop.
Consider a direct-current circuit with a nine-volt DC source; three resistors of 67 ohms, 100 ohms, and 470 ohms; and a light bulb—all connected in series. The DC source, the conductors (wires), the resistors, and the light bulb (the load) all have resistance; all use and dissipate supplied energy to some degree. Their physical characteristics determine how much energy. For example, the DC resistance of a conductor depends upon the conductor's length, cross-sectional area, type of material, and temperature.