Power Factor Correction Units By using a Power Factor Correction system (PFC) we can ensure you pay the lowest possible electricity costs

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Most electricity suppliers charge on the basis of the energy that is supplied (KVA) to a customer, so it makes good sense only to pay for the electricity you use. A poor power factor can negatively impact electricity bills. By using a Power Factor Correction system (PFC) we can achieve a power factor close to 1.00 ensuring that you pay the lowest possible electricity costs.


Reduce Costs

A properly engineered automatic PFC, connected into the main electrical switchboard provides long life and low maintenance with a guaranteed reduction of electricity costs. In most cases, these units more than pay for themselves within the first 12 months of operation.

Use Power more efficiently

Power factor is a measure of how effective incoming power is being used by your electrical equipment, and is expressed as a numerical value between zero and one.

The higher the power factor, the more effective the electrical equipment is being used e.g. a power factor of 0.7 means that 70 per cent of power supplied to the equipment is being used effectively, and 30 per cent is being wasted.

This wastage is an unnecessary cost. Ideally your power factor should be as close to one as possible to ensure your site is using energy efficiently.

The closer a power factor is to one, the more efficiently a business is consuming electricity. A power factor between 0.95 and one is more cost effective.


Improved electrical supply efficiency

Greatly reduce power bills

Environmental benefits through less Greenhouse Gases

Protection and reduction on loads on Switchboard equipment

Increased use of available electrical assets

Comply with Electricity suppliers minimum PFC requirements


  • Your power factor can be improved by installing Power Factor Correction (PFC) equipment called Capacitor Banks. Capacitor Banks work to correct energy supply inefficiencies, while also reducing peak demand on the electricity network. This is a relatively low cost solution to reducing your power bill.

    Other means are by installing, energy efficient lighting with a high power factor. The power factor rating is generally found on the product specification. LED lights general have a power factor above 0.95.

    Also look at your mechanical services (Air Conditioning & Heating). These services have a consumption rate especially in the hotter summer months and will contribute to high energy costs.

    In larger buildings, mechanical services are generally metered on a separate supply and incur their own bills. Installing a well maintained power factor correction unit beside the meter can generally reduce costs by up to 30 – 40% of the bill.

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  • This is generally done off your electricity bill. We look at peak demand, which will indicate the size of the unit that you require and the usage & cost of KVA that the consumer is paying, we will then will be input into a spreadsheet that has specific formulas and this will provide an end result. (Please see example).

    Max Demand (KVA) 267
    PF (now) 0.75
    Correcting to...(PF) 0.98
    Demand (kW) 200
    Current/Ph. (Now) 371
    New Current/Ph. 284
    New Demand (KVA) 204
    Saved KVA 63
    kVAr required 136
    kVAr Suggested 150
    Installed Cost (estimate) $14,150.00
    $/KVA(as shown on monthly Bill). $9.85
    $/kva/yr. $118.20
    Savings/yr $7,407
    Payback(yrs.) 1.96

    This is a true example that was provided to a customer.

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  • You can find this information on most power bills. Power Factor Correction is only cost effective as mentioned above if you are billed in KVA (power supplied) not in Kw (Power used). If you are unsure, please contact your Energy Supplier and they will be able to furnish the information you require. As a rule of thumb, KVA rates are only supplied to medium to large consumers of electricity by the supplier. Power Factor Correction is not suitable for your home. You will only be billed in KW (power used) for your residence.

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  • Many medium to large businesses are now being charged a kVA tariff instead of a kilowatt tariff. What this means is that you are being charged for the power you are supplied (kVA) rather than the power that you use (kW). In essence you are paying for the wasted power supplied. Businesses with low power factor (say 0.7 – 0.9) will be paying additional (kVA) charges for this waste. Depending on the tariff you’re on, power factor correction could be a cost effective initiative for your business to reduce electricity costs

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