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How do we calculate the Savings a power factor correction unit will provide?

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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