Another common question we are asked regarding Power Factor Correction is “how long should our company expect before we see a return on our investment?”

Power factor correction can be a good investment with a payback period typically ranging from  6 months to 3 years – based on utility prices the day of installation (* see below).  This means it takes between half a year and three years for the money you save on electricity bills to equal the initial cost of installing the power factor correction equipment.  The Energy Efficiency Group PowerLink equipment has a 5-year warranty, but properly maintained will last for many years beyond.

Here are some factors that can affect the payback period:

• Cost of electricity: * The higher your electricity rates, the faster you’ll see a return on investment. Generally speaking, the cost of electricity rarely goes down (though it may)- as rates rise year-over-year, the ROI period will decrease.
• Current power factor: Facilities with a significantly lower power factor (below 0.9) will benefit more from correction and see a quicker payback period.
• Amount of correction needed: The size and type of correction equipment needed will impact the initial cost.

If you’re considering power factor correction, it’s important to consult Energy Efficiency Group to assess your specific situation and determine the potential cost savings and payback period.

development@EnergyEfficiencyGrp.com

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.