The Benefits of Power Factor Correction

The Power Factor cost reduction will reduce your demand charges on your electricity bills. At the same time, it will increase the load carrying capacity that you have in your existing electrical circuits. There are numerous benefits that you can derive from the power factor cost reduction beyond just its effect on your balance sheets. For example, increasing your Brisbane energy efficiency will also result in great environmental benefits. It is one of the best ways to cut down on your carbon footprints. Businesses that want to have some green footprints can easily apply power factor correction as a way of cutting down on the environmental impact of their activities.

power factor cost reduction

power factor cost reduction

The most obvious benefit of applying the power factor cost reduction is to increase the demand charges on your electricity. It all boils down to how the utility companies price their electricity. This is often based on the maximum metered demand that is read from the highest metered demand in kilowatts or in kilovolt-amperes.

For those big businesses or large power consumers that consume more than $2000 worth of electricity per month, the demand charges are generally based on the kilovolt-amperes or kVA. With a kVA-based demand, having a low power factor will result in higher kVA demand and this will subsequently result in much higher demand charges. By improving the power factor in these situations through the Power Factor reduction, you will, therefore, be able to lower your kVA demand charges and your business will be able to reduce its demand charges. This is one of the best ways to reduce electricity costs for your energy-guzzling business.

Increase the load carrying capacity of the existing circuits

This is the other benefit that you will derive from lowering your Power Factor through the Power Factor Correction method. Lower Power Factor means that you have significant load that is drawing reactive power. However, these loads drawing the reactive power are still supplied by reactive current. When you install the capacitors to correct the Power Factor, you will be able to reduce the current that is being drawn from the network. The reduction in the current drawn will also result in the reduction of the Power Factor of the network. This will as a result allow the circuit to carry greater loads than was possible without the corrective measure. By expanding the load capacity of your network, you are going to save thousands of dollars that could have been used in upgrading your distribution network through more cabling and transformer installation.

Of course the other key benefit that you will derive from the power factor cost reduction is that you are also able to cut down on your carbon footprints in the process. By applying the power factor correction on your network, you will also be putting less strain on the electrical grid and will as a result reduce your carbon footprint. Over time, this will be worth thousands of tons in carbon footprint reduction. It is something that you could not have achieved through any other energy saving techniques without significant costs on your business. Visit