Power Factor Correction Explained: How It Works and Why You Need It
Power factor correction is a technology that balances the amount of power needed with the amount of power extracted. It is used at commercial and residential sites. Every site pulls power used for consumption (real power), but power is also drawn that is non-working (reactive power). Apparent power is the combination of both.
The electric company works with the site owner to establish an acceptable power factor. The power factor is the ratio of real power to apparent power. Since power consumers must pay for any electricity extracted, the electric bill includes charges for reactive power consumption. When the power factor declines below that set amount, charges are added to the electric bill for efficiency reasons.
Another way to describe the power factor is the ratio of the total kilowatts (current) to the total volts-amperes (voltage). According to the U.S. Department of Energy (DOE), a low power factor results from inductive loads. The inductive load is the reactive or non-working power that enables equipment like a compressor to operate by sustaining a magnetic field. Working power supports electrical appliances like heating and cooling systems and lighting.
The closer the power factor ratio is to 1, the better. According to the DOE, a power factor less than .95 usually results in the utility company charging a penalty fee.
Delivering Many Benefits
Power factor correction technology enables controlling the amount of reactive power consumption to avoid additional electric charges. It also delivers other benefits that include the following.
- Contributes to electrical efficiency, which in turn supports environmental sustainability
- Ensures sustained electrical delivery
- Reduces strain on the electrical system
- Helps to avoid electrical issues like power losses and voltage drops
- Increases operational efficiency of equipment, appliances, and systems drawing electricity by improving power quality
The power factor correction technologies are inductors or capacitors installed parallel with system electrical loads. The technology works to keep the current and voltage balanced.
Power Factor Correction Technology
As electrical rates continue to increase, installing power factor correction technology is an affordable and efficient way to manage electricity charges. It will also protect equipment from damage and poor performance due to voltage drops from power losses.
