Why Should I Improve My Power Factor?

  • You want to improve your power factor for several different reasons.  Some of the benefits of improving your power factor include:

1) Lower utility fees by:

(a). Reducing peak KW billing demand:

  • Inductive loads, which require reactive power, caused your low power factor.  This increase in required reactive power (KVAR) causes an increase in required apparent power (KVA), which is what the utility is supplying. So, a facility’s low power factor causes the utility to have to increase its generation and transmission capacity in order to handle this extra demand.

  • By lowering your power factor, you use less KVAR.  This results in less KW, which equates to a dollar savings from the utility.

(b). Eliminating the power factor penalty:

  • Utilities usually charge customers an additional fee when their power factor is less than 0.95.  (In fact, some utilities are not obligated to deliver electricity to their customer at any time the customer’s power factor falls below 0.85.)  Thus, you can avoid this additional fee by increasing your power factor.

2) Increased system capacity and reduced system losses in your electrical system

  • By adding capacitors (KVAR generators) to the system, the power factor is improved and the KW capacity of the system is increased.

  • For example, a 1,000 KVA transformer with an 80% power factor provides 800 KW (600 KVAR) of power to the main bus.

  • By increasing the power factor to 90%, more KW can be supplied for the same amount of KVA.

  • 1000 KVA =            (900 KW)2  +  ( ?  KVAR)2

  • KVAR = 436

  • The KW capacity of the system increases to 900 KW and the utility supplies only 436 KVAR.

  • Uncorrected power factor causes power system losses in your distribution system.  By improving your power factor, these losses can be reduced.  With the current rise in the cost of energy, increased facility efficiency is very desirable.  And with lower system losses, you are also able to add additional load to your system.

3) Increased voltage level in your electrical system and cooler, more efficient motors

  • As mentioned above, uncorrected power factor causes power system losses in your distribution system.  As power losses increase, you may experience voltage drops.  Excessive voltage drops can cause overheating and premature failure of motors and other inductive equipment. So, by raising your power factor, you will minimize these voltage drops along feeder cables and avoid related problems.  Your motors will run cooler and be more efficient, with a slight increase in capacity and starting torque.