What is Power Factor?

Your site's power factor can be considered to be a measure of the efficiency with which your site consumes power from your electrical utility company. Power factor ranges from zero to unity, with values above 0.95 presently considered acceptable. Many factors impact on the power factor of a site, with electric motors and ballast-supported lighting often being the biggest contributors to lowering the power factor. Many lines companies are heavily penalising consumers for low power factors as a means to encourage them to improve their power factors to above 0.95.

What penalties could you be paying?

If you are being charged penalties for a low power factor these will be itemised separately on your power bill, typically called 'Power Factor Charges' or 'Reactive Energy Charges'. These charges can be significant (thousands of dollars) and are charged for the month based on the lowest power factor measured in any month; so even if your average power factor is above 0.95, if your site power factor drops to 0.75 any time in the month then your penalties are based on a monthly power factor of 0.75.

What can you do to remove these penalties from your power bill?

We offer on-site Power Factor Correction solutions to raise your site power factor to an acceptable level and remove all penalties from your power bill. These solutions typically have a ROI of 12-18 months at current penalty levels, with ROI expected to reduce to less than 12 months after April 2015 when penalties are expected to double. The solution installation is straightforward and can be implemented in 2-3 weeks.

We guarantee the performance of our systems to remove all power factor penalties from your future power bills.

Astute managers are taking action to ensure that their organizations are not paying these unnecessary penalties. Contact our team to arrange a no-obligation evaluation and report on your site's power factor and how any monthly penalties you are paying can be eliminated.

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