Power Factor Correction Studies can provide recommendations to correct the power factor at their facility, which reduces demand charges and/or avoids power factor penalties on the customer’s monthly electric bills.
What Is Power Factor?
Power Factor (PF) = Real Power (kW) ÷ Apparent Power (kVA)
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Ideal PF = 1.0 (purely resistive load)
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Low PF (< 0.9) usually indicates inductive loads like motors, transformers, or fluorescent lighting
A low power factor means more current is required to deliver the same amount of useful power, which results in:
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Increased losses in cables and transformers
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Overloaded circuits
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Higher energy bills (due to penalties or reduced efficiency)
What Is a Power Factor Correction Study?
A PFC study analyzes the power system to:
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Measure the existing power factor
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Identify the sources of reactive power (usually inductive loads)
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Determine the size and location of capacitor banks or PFC equipment needed to improve the power factor
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Simulate different scenarios to avoid problems like overcorrection or resonance
Objectives of a Power Factor Correction Study
Objective | Purpose |
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Improve power factor | Reduce reactive power and increase efficiency |
Avoid utility penalties | Many utilities charge extra for low PF (e.g., < 0.9) |
Free up capacity | Reduce current draw, allowing more load on the same system |
Reduce energy losses | Minimize I²R losses in cables and transformers |
Optimize equipment sizing | Avoid oversizing cables, transformers, and generators |
Prevent overcorrection or resonance | Avoid damaging harmonics or leading PF issues |
Inputs Needed for a Power Factor Study
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Load profile and real-time data (kW, kVA, kVAR)
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One-line diagram of the electrical system
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Locations and ratings of major loads (motors, transformers, etc.)
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Utility billing data (for PF penalties)
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Existing capacitor banks or correction equipment
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Harmonic distortion data (if non-linear loads exist)
If you think your company could use a study, contact us here.