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.
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:
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.
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.