What it means

Power factor is the ratio between the power a facility actually uses to do work (kW) and the total power it draws from the grid (kVA). Motors, transformers, pumps and similar inductive equipment draw current that supports their magnetic fields but performs no useful work, which pushes that ratio below 1.0.

The utility still has to deliver, and build capacity for, the full current, so many commercial tariffs add a penalty when power factor falls below a threshold, commonly around 0.90 or 0.95. Correction usually means installing capacitors sized to offset the reactive load, which raises power factor back above the threshold.

What correcting it can do

• Remove or reduce power factor penalties on the utility bill
• Lower the total current drawn through the facility’s wiring and transformers
• Free up electrical capacity that was being consumed by reactive load
• Reduce losses and heating in distribution equipment

Our role

Radiant Energy Partners provides power factor correction for its clients.

Start with a free bill review