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The fault current levels through the electric devices have a significant impact on failure probability. New fault current results in exceeding the rated capacity of circuit breaker and switching equipments and changes operation characteristic of overcurrent relay. In order to solve these problems, SFCL (Superconducting Fault Current Limiter) has rising as one of new alternatives so as to improve these problems. A fault current reduction differs depending on installed location. Therefore, a location of SFCL is very important. Also, SFCL decreases the fault current, and it prevents surrounding protective devices to be exposed to fault current, it then will bring a change of reliability. In this paper, we propose method which determines the optimal location when SFCL is installed in power system. In addition, the reliability about the power system which SFCL was installed is evaluated. The efficiency and effectiveness of this method are also shown by numerical examples and the reliability indices are evaluated in this study at each load points. These results show a reliability change of a system when SFCL was installed.