Power Factor Correction

You may be able to claim up to $41/kVAr by installing Power Factor Correction (PFC) equipment, reducing the amount of power your business draws from the network at your peak time. This could add up to thousands of dollars in rewards!

What is power factor?

Power factor is a way of measuring efficient power usage. It is expressed as a numerical value between 0 and 1. The closer your power factor is to 1, the more efficiently the business is consuming electricity. Installing Power Factor Correction (PFC) equipment helps improve this efficiency.

One way to understand power factor is to think of it as a cappucino.

Power factor correction explained using a cappuccino diagram. Froth is the reactive power kVAr, coffee is the Real power kW and the whole cappuccino is the Apparent power.

Power factor is the relationship betwen 'real power' and 'apparent power'. Apparent power is your total usage, made up of real power (which is the part that does the work) and reactive power (which is required by AC systems to operate). Reactive power contributes to your electricity bill but is not actually used.

In other words, a good cappucino includes coffee and froth, but it's the coffee that does the important work. To get the best value out of your morning cuppa, you want more of the coffee and less of the froth.

Power Factor Correction (PFC) equipment

Power factor can be improved by installing PFC equipment called capacitor banks. Capacitor banks work to correct energy supply inefficiencies, while also reducing peak demand on the electricity network.

A power factor between 0.95 and 1 is most cost effective. A poor power factor (below 0.8) can negatively impact electricity bills. PFC equipment is readily available and may be a cheaper solution than upgrading electrical equipment. Energex offers businesses the opportunity to recieve funding to assist with the installaion of PFC equipment.

Need more information?

Visit the Is my business eligible? page to see whether your business can benefit from the Positive Payback for business initiative.

See our Supplier Register to talk to an expert about installing PFC equipment. Please note, Energex does not endorse these suppliers and installers.

Read our Terms and Conditions for Business.