Demand Reduction Solutions For Businesses

Improve your power quality with power factor correction

Is poor power factor adding to your business electricity costs?

What is Power Factor?

Electrical equipment uses both ‘real power’ and ‘reactive power’ to operate.  Reactive power starts the equipment’s motor, and real power runs the equipment. The ratio between the two types of power is known as Power Factor.

To demonstrate Power Factor in simple terms, we use the cappuccino illustration.

Whether your site has a good or poor Power Factor rating is determined by the amount of reactive power used (the froth).

The closer a power factor rating is to 1, the more efficiently your site consumes electricity (minimal froth).  A power factor rating fluctuates, so an average annual rating between 0.95 and 1 is considered optimal and indicates efficient utilisation of electrical power by your equipment.

power factor correction

How can poor power factor affect your business?

Since July 2015, large market business customers have been charged for the reactive power component of their energy. Reactive power is measured on electricity bills as a kVA Demand Charge and is calculated on the highest kVA demand spike recorded for the billing period.

The two main ways poor power factor affects a business are:

How to correct poor power factor

A power factor correction unit (PFC Unit) improves a site’s power quality by reducing the size of the reactive power component (the froth). It does this by using capacitors built into a unit that gets connected to the main electrical switchboard.

A PFC Unit is specifically designed and manufactured for your Site’s needs, by a specialised engineer and will not affect the day to day operations of your site.

Common causes of poor power factor

  • Transformers
  • Air conditioner motors

  • Equipment motors & pumps

  • Welding equipment

  • Fluorescent lighting

How do I find my Site’s power factor?

A Power Factor Investigation is the easiest way to determine your site’s current average power factor rating.

Using your energy usage data, we can discover if your site would benefit from installing a PFC Unit and the likely demand savings results you will achieve.

The cost for a Power Factor Investigation is:

From $395 + GST*

*Note: The price is based on performing the investigation as a separately targeted solution. Analysis of your Site’s power factor rating is included when you undertake an Energy Audit Investigation.

The investigation will determine:

  • If your site has poor power factor

  • What size PFC Unit you need to correct it

  • The new power factor for the site after correction

  • The kVA demand savings expected per annum

  • A budget quote to install it and the likely return on investment

  • If there is demand reduction funding available in your area

Find out if power factor correction could reduce your demand costs