A measure of how effectively a site uses its electricity supply.
In basic terms, power factor is the ratio of actual power, sometimes called real power, being used by your business, to the total power being supplied from the grid, sometimes called apparent power.
Power factor is expressed as a value between zero and one; the closer the power factor is to one, the more efficiently electricity is being used. This is considered a “good power factor” and your equipment is working efficiently. A poor power factor shows that your business is using more energy than you need and as such, potentially paying higher network tariff demand charges.
ABC Incorporated has a power factor of 0.82 with a demand charge of $150/KVA. Based on their peak demand of 244kVA, this means an annual charge of $36,600 or 244kVA x $150 kVA.
After the installation of a power factor unit, ABC Incorporated's power factor increases to 0.98. Reducing the customer's peak demand to 204kVA means demand charges are reduced to $30,600; a savings of $6000.
Power factor correction units
How do the units work?
Our units use software driven capacitors to supply peak power to your business. These capacitors act like batteries so you don’t have to buy that peak electricity. The unit injects the right amount of electricity to smooth your demand throughout the day.
Units come in a range of sizes to suit your requirements from the smaller 10 kVA units to modular large units scalable to 600 kVA units.
We'll tailor and install the right one for your business, provide you with the support you need and payment option to suit.
You have the choice to purchase outright or you can choose Power Factor Flex.
Power Factor Flex with no inital cost
Not ready or don't want to invest in a power factor correction unit? Start reducing your demand charges by installing a power factor correction unit at no inital cost.
Why Power Factor Flex?
- $0 upfront costs for a unit tailored to your needs
- Maintanence and monitoring of the unit by Origin to ensure the performance of the unit
- Choice of 3, 5 and 7-year terms
And at the end of the Agreement, you can offer to buy the power factor correction unit for as little as $1, and take the full benefit of the unit.
Frequently asked questions
A low power factor is primarily caused by inductive loads.
Most commercial and industrial sites will typically have induction machines that produce inductive loads installed at their premises such as:
- Electric motors/transformers/coils
- Industrial fans used in heating and cooling units
- Compressors/relays used in refrigerators
- Ventilation units
As these machines require reactive power (kVAr) they have a negative effect on the sites Power Factor.
Without getting too technical, reactive power cannot be completely eliminated as it is required to supply the magnetic current that partially powers induction machines.
Whilst reactive power cannot be eliminated, it can be provided by capacitors (PFC), rather than the utility, therefore reducing energy charges.
Reactive power (kVAr) Is the amount of power that does not perform any useful work, but is caused as a result of the voltage supplied to a site; and the current drawn by equipment on a site; being out of phase.