What is Power Factor

Power Factor is the relationship between working power flowing to your load (measured in kW) and the apparent power in the circuit (measured in kVA). Power Factor is a measure of how effectively you are using the energy that is supplied to your premises, and is influenced by the amount of inductive load that is created by your electrical equipment and lighting.

Why does power fact matter?

If the network tariff for your premises is a kVA demand based tariff, then your network charges are directly influenced by your Power Factor. A poor Power Factor can cost you thousands of dollars more in network charges.

Power Factor Correction

Sites with a low Power Factor can be improved with the installation of capacitors which are typically located in a cabinet next to your electrical switchboard. These capacitors work as reactive current “generators” to reduce your energy demand. This is called Power Factor Correction.

The cost of installing this equipment is traded off against the reduced network charges that flow from having an improved Power Factor. Payback periods vary depending on the specifics of your site and the distribution network that you are connected to, and can be as short as a year, but usually range between two and four years.

How we can help

Contact us to find out if Power Factor Correction may be suitable for your site. We can arrange equipment quotation and assess the payback period based on prevailing network charges and any proposed or approved future change to those charges.