Power Factor Correction Units: Lowering Your Energy Costs

Efficient Energy Use, Lower Costs: Power Factor Correction Solutions for Your Business

What is Power Factor Correction?

Power Factor Correction (PFC) might sound technical, but in simple terms, it’s about helping your business save on electricity costs by reducing energy waste. A PFC unit is a device that adds capacitors to your electrical system when needed. These capacitors reduce 'reactive power'—essentially, the energy that’s generated but isn’t actually used, which can inflate your power bills.

How Does Power Factor Correction Work?

Every month, electricity costs are impacted by the highest demand peak on your site—known as the “kVA demand peak.” When this peak is high, you’re charged more. This peak demand includes both the energy you actively use (measured in kilowatts, kW) and reactive power (measured in kilovolt-amperes reactive, kVAr), which doesn’t perform any useful work but still counts toward your bill.

For example:

  • Total Demand (kVA): 100 kVA
  • Actual Power Used (kW): 90 kVA
  • Wasted Reactive Power (kVAr): 10 kVA

The PFC unit steps in to reduce this reactive power. With a well-designed PFC system, you could see your peak reduced from 100 kVA to 90 kVA, which can mean substantial annual savings.

Why Use a Power Factor Correction Unit?

  1. Lower Electricity Bills: Reducing your peak demand directly lowers the charges you pay to your energy provider, with potential savings often running into thousands per year.
  2. Greater Energy Efficiency: By minimizing reactive power, your site operates more efficiently, putting less strain on equipment and prolonging its lifespan.
  3. Sustainable Energy Use: A better power factor means less wasted energy, contributing to a more sustainable and environmentally friendly operation.

The Savings at a Glance

By implementing a PFC unit, a site with a typical demand of 100 kVA and a 0.9 power factor could potentially reduce its peak to 90 kVA. In municipalities where the charge per kVA is R200, this could mean savings of approximately R19,200 per year.

Power Factor Correction units are ideal for any business with a monthly demand over 60A. As energy prices continue to climb, a good power factor becomes a valuable asset for anyone looking to control costs and optimize their power usage.

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