What if we don’t do Power Factor Correction?

From the Mailbag: We have a PF of 0.76- what if we don’t do Power Factor Correction?

A power factor of 0.76 means that only 76% of the delivered power by the electrical system is being used for real work, and the remaining 25% is reactive power. This reactive power is used by inductive loads (like motors) to create magnetic fields for operation, but it doesn’t do any actual work; in other words- 24% of the energy you’re company is paying for isn’t offering any benefit and is wasted.

Here’s what happens if you don’t do power factor correction:

  • Higher electricity bills: In addition to paying for what you’re not using., utility companies often charge penalties for low power factors because it increases the burden on their systems to deliver the same amount of usable power. Utilities generally charge a penalty on a sliding scale for any PF under 0.95 (or 95%).
  • Increased strain on YOUR electrical systems: Higher currents are required to deliver the same amount of real power, which can lead to overheating of transformers and conductors. This can lead to more frequent maintenance, premature motor burnouts,  and potential other equipment failures.
  • Reduced capacity for additional loads: The available capacity for real power is reduced due to the presence of reactive power. If you want to add more equipment to the circuit, you may not have the capacity available without correcting the power factor.
  • Potential equipment damage: Overheating caused by high currents can damage motors, fans, compressors, lighting, etc…- which leads to unnecessary maintenance costs. 

Neglecting power factor correction can cost you more money and lead to potential electrical system problems in the future. The time to act is now to find out how your facility and systems are operating. The cost of assessment is small, but the financial benefit of action is immeasurable. 


Take Action!

Contact us at: development@EnergyEfficiencyGrp.com

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. 

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