How does Power Factor Correction work?

• By installing suitably sized switched capacitors into the power distribution circuit, the Power Factor is improved and the value becomes nearer to 1 thus minimising wasted energy, improving the efficiency of a plant, liberating more kW from the available supply and saving you money!The purchase cost of the installation is usually repaid in less than 1 years electricity savings.

In Conclusion

• The effect of having a power factor below the minimum stipulated by your provider will be that you will pay more in demand charges than you would if the power factor was above the required minimum.
• This extra amount is charged by a utility so they can recover their costs for maintaining a good power factor on their distribution system.
• While the monthly facility power factor is usually not specifically shown on your bill, it is likely that power factor is considered in determining your demand if you see both peak kW and peak kVA stated on your bill.
• You can confirm whether your provider considers power factor in determining the monthly demand (kW) charge and, if so, what their minimum required power factor is, by consulting the definition of demand charges in your electric rate, or contacting your provider.
• Please keep in mind, however, that if your power factor is already above the minimum level required by your provider, increasing it further will not reduce your demand charges.
• Also, it is not necessary to correct your power factor if it is not considered by your electricity provider in determining your demand charges.