I usually calculate the equivalent full load hours based on the resulting energy use of the equipment associated with the fractional or on/off schedule. The calculation is EFLHs = annual energy use / peak energy demand.
An example would be a light fixture with input power of 1 kW that has an annual energy use of 1,126 kWh and a peak energy demand of 0.9 kW. The calculated EFLHs of the schedule assigned to this light fixture would be 1,251.1 hours/year. Note that you use the peak demand and not the input power. If the peak demand is less than the input power, that means that the schedule doesn't include an hour with a fractional value of 1.0.