5 Benefits Of Power Factor Correction That Can Impact Your Utility Bill

Have you studied your utility bill? Do you see two kinds of reading on it? One in kilowatts (kW) and another one in kilovolt-amps (kVA). In a utility bill, two types of demand are recorded. These two types of power together decide the amount you pay as your bill. Let us understand what these 2 different types of reading signify.

Power suppliers need to view the users’ peak electricity demands to understand how much to supply and maintain electric grid safety. Usually, the power required to start a system is more than the amount of power needed to keep running. The ‘real power’ is the power used and measured in kilowatts, while the ‘accurate power’ is the power required to start a system and is measured in kilovolt-amps. Power factor is the ratio of real power to apparent power.

If the supplier is using power unsuitably, a negative outcome is witnessed on the user’s bill. Inefficient power factor will generate a higher bill amount since the kVA demand will be higher than the kW demand. Thus, power factor correction is significant, and it is useful as well. It helps lower demand charges on the power system and facilitates improved load carrying capacities in the existing circuits.

Here are 5 ways to reduce your utility bill with power factor correction.

Avoid Penalties For Power Factor

Most industrial setups use a large number of induction motors to operate pumps, conveyors and other equipment. Such induction motors lead to the lowering of the power factor. Some supply companies penalise lower power factors. With power factor correction, users can easily avoid the extra charge on the bill.

Lesser Demand Charges

Some utility suppliers also levy a charge for maximum metered demand based on either the highest registered demand in kilowatts (KW meter) or a percentage of the highest registered demand in KVA (KVA meter), whichever is higher. In case the power factor is less, the percentage of the calculated KVA will be greater than the KW demand. Fixing the power factor with the help of power factor correction will reduce the demand charge, allowing users to reduce electricity bills.

Higher Load Carrying Capabilities In The Circuits

Using power factor correction capacitors at the end of existing circuits near the inductive loads lessens the current carried by every circuit. The cutting back of current flow due to improved power factor may help the circuit to carry new loads. Thus, saving the cost of upgrading the distribution network when extra capacity is required for additional equipment. This helps avoid upgrade costs. Also, the reduced current flow decreases resistive losses in the circuit.

Enhanced Voltage

A reduced power factor leads to a higher current flow for a said load. As the line current increases, the voltage dip in the conductor rises, resulting in a reduced voltage at the plant’s equipment. With a good power factor, the voltage dip in the conductor is lessened, which improves the voltage.

Decrease In Power System Losses

Even though the investment return from conductor loss reduction alone is not enough to account for capacitors’ use, it is sometimes a lucrative benefit. This is especially true for older plants with long feeders or in field pumping operations.

Schneider Electric India is a leading name in the field of energy management and power distribution. They have a deep understanding of power factor correction and also offer solutions like MCBs and circuit breakers of professional-grade quality to make your home into smart homes.