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Efficiency

Power Factor Correction: Save Money on Your Electricity Bill

Low power factor means wasted energy and higher utility bills. Discover how capacitor banks, synchronous condensers, and modern VFDs can correct your power factor and reduce costs.

What correction does

Power factor correction reduces the reactive power that must flow from the utility or generator. The load may still need reactive power, but correction equipment supplies much of it locally.

This lowers upstream current and can free capacity in cables, transformers, switchgear, and backup power equipment.

Common correction methods

Capacitor banks are the most common solution for lagging power factor caused by inductive loads. They may be fixed, switched in steps, or controlled automatically as loads change.

Synchronous condensers, active filters, and VFDs can also support correction in more complex installations, especially where harmonics or dynamic loads are present.

  • Fixed capacitors for steady loads
  • Automatic capacitor banks for changing loads
  • Harmonic-rated equipment where nonlinear loads are significant
  • Engineering review before correction on generator-backed systems

Avoid overcorrection

Too much correction can create leading power factor, resonance issues, or generator voltage regulation problems. Correction equipment should be sized from measured demand and reviewed against the full electrical system.

The best projects start with utility bills, interval data, and field measurements so the correction target matches actual site behavior.