A common question we are asked by company operational stakeholder is: “how much savings will we achieve by conducting a Power Factor Correction?“

Unfortunately, there’s no single, definitive answer to the average savings a company can expect from power factor correction (PFC). Here’s why:

• Variable Factors: Savings depend heavily on several factors, including:

  • Baseline Power Factor: Companies with a very low power factor (below 0.8) will likely see more significant savings than those with a power factor closer to 1 (ideal).
  • Utility Rates: The specific penalty structure for low power factor imposed by the local utility company significantly impacts savings. Some utilities have steeper penalties than others.
  • Energy Consumption: Companies with higher overall energy usage will see a larger potential cost reduction from PFC.
• • • Increased Capacity: Reduced reactive power allows existing electrical infrastructure to handle more load, potentially delaying expensive upgrades.
    • Improved Equipment Life: Lower currents due to PFC reduce stress on electrical components, potentially extending their lifespan.

      Focus on Efficiency: While cost savings are a major benefit, PFC’s primary focus is improving overall electrical system efficiency. This translates to:

Key Takeaway:

The best way to estimate potential savings from PFC is to conduct a power factor assessment. Energy Efficiency Group can analyze your facility’s specific energy usage, power factor, and recommend action steps.

If you suspect a low power factor might be an issue, don’t hesitate!  Contact Energy Efficiency Group to begin the conversation. 

About Energy Efficiency Group:

Energy Efficiency Group is a Power Factor Correction company based in Cincinnati, Ohio. Though we are based in Cincinnati, we have a national (and limited international) reach. We partner with manufacturing, industrial, warehouse, offices, schools, processing facilities, as well as hotels, resorts, theme parks, zoos, etc. Any facility with that features “a lot of moving parts” is a potential candidate to focus on sustainability efforts.  Even if your facility installed 100% energy efficient components- most of these are not manufactured by the same companies and not designed to “work together.” Meanwhile, they may be energy efficient on their own, as a whole they may be working against each other causing inefficiencies. Energy Efficiency Group is partnered with Indianapolis-based Global Energy Solutions Group (GESG) which holds multiple US patents on Power Factor Correction equipment.