Power factor is a measure of how efficiently your electrical system uses electricity. A high power factor means most of the power you draw from the grid is used effectively to run your equipment. A low power factor indicates a large portion of power is wasted as reactive power, which increases your electricity costs without performing useful work.
When your facility operates with a low power factor, utility companies charge extra fees. This happens because:
Reactive power increases the total current flowing through your electrical system.
Higher currents cause more losses in transformers, cables, and switchgear.
Utilities need to supply more power capacity than you actually use, resulting in penalties or higher tariffs.
These extra charges can add up to a significant portion of your monthly electricity bill.
Power Factor Correction (PFC) reduces the amount of reactive power by installing capacitor banks or automatic correction equipment that balance the load. This means:
Your facility draws less total current from the grid.
Electrical equipment operates more efficiently.
You avoid penalties or surcharges from your utility provider.
By improving your power factor, you can:
Reduce reactive energy charges by up to 35%
Lower demand charges by optimising the load on transformers and generators
Decrease losses in electrical cables and equipment, saving energy
Extend the life of motors and electrical infrastructure, reducing replacement costs
Improved voltage stability and power quality
Reduced carbon footprint by lowering energy waste
Enhanced reliability of critical equipment
Compliance with local electricity regulations and standards
Industries with large electric motors, HVAC systems, lighting, and industrial machinery often have low power factor issues. If your electricity bills include reactive power charges or if you face frequent power quality problems, PFC can deliver significant cost savings.
At Neutron Energy Control, we offer tailored Power Factor Correction solutions designed to maximise your energy savings. Our expert team will:
Conduct a thorough site audit and power factor analysis
Design and install the most effective PFC system for your load profile
Provide ongoing maintenance and remote monitoring to ensure optimal performance