The Benefits of Power Factor Correction That Can Impact Your Daily Life

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A wide range of measures can be applied to electric and power management systems to make them efficient. One of them is the power factor correction. The benefits of power factor correction include lower demand charges on a power system, prolonged load carrying skills in your existing circuits and reduction in power system losses.

Here are the benefits:

Preventing Power Factor Penalties

Some industrial processing facilities utilise a large number of induction motors to function their pumps, conveyors, and other machineries. These induction motors permit the power factor to be intrinsically low for most industrial facilities. Many electric utility companies assess a power factor penalty for lower power factor (usually below 0.80 or 0.85). By using power factor correction, you can reduce the power factor penalty from your bill.

Reduce Demand Charges

Many electric utility companies charge for maximum metered demand either on the basis of highest registered demand in kilowatts (KW meter) or a fraction of the highest registered demand in KVA (KVA meter), whichever is bigger. In case the power factor is low, the percentage of the measured KVA will be notably greater than the KW demand. Enhancing the power factor through power factor correction will, therefore, reduce the demand charge, helping to lower electricity bills.

Increase Capabilities of Existing Circuits 

Loads drawing reactive power also need reactive current. Installing power factor correction capacitors at the edge of existing circuits close to the inductive loads, lower the current flowing in each circuit. This lowered current flow, resulting from improved power factor, can allow the circuit to carry new loads. This prevents the expenses of renovating the distribution network when extra capacity is needed for additional machinery or equipment, saving individuals or companies thousands of dollars in redundant upgrade costs. Furthermore, the reduced current flow also negates resistive losses in the circuit.

Better Voltage 

A lower power factor results in a higher current flow for a given load. As the line current increases, the voltage drop in the conductor rises at the same time, which could lead to a lower voltage at the equipment. With a better power factor, the voltage drop in the conductor is close to negligible, improving the voltage of the equipment.

Lower Power System Losses 

Although the financial gain from conductor loss reduction alone is not a reason to justify the installation of capacitors, it provides an enticing benefit; particularly in case of seasoned plants with long feeders or in field pumping operations.

#SchneiderElectric has established itself as a leading brand in the area of power management and electrical power distribution, not just in India, but across the globe. The brand has explored power factor correction as well to a deep level. The brand also has a diverse range of MCBs and other circuit breakers.


  • Energy Control System

    3 years ago

    Great info you have shared here.

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