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Providing Dependable Electrical Service Since 1949 269-968-2241

Providing Dependable Electrical Service Since 1949

Benefits of Power Factor Correction

Electric Meters
Today, efficient use of electricity is a priority in many commercial facilities. Heating and lighting account for the largest portion of electricity bills. High electricity bills could be attributed to many factors among them energy losses from equipment such as computers and fixtures such as lighting bulbs.

If high electricity costs are a concern, power factor correction may help to improve energy use and minimize wastage. Read on to learn more about power factor correction and its benefits for your facility.

Power Factor

Power factor is a measure of how your electric system, which comprises electric equipment and fixtures, uses electricity. This is expressed as the ratio of the real power to apparent power.

Real power is the actual power that your electrical system uses. This is expressed in kilowatts (kW). Some equipment such as motors use reactive power, but this power does not perform any actual work and is therefore known as nonreal power.

Apparent power is the sum of real and nonreal power, expressed in kilovolt-amperes (kVA). The more you add equipment that uses reactive power to your electrical system, the more apparent power becomes important.

The apparent power equates to the total power required to produce the amount of real power your electrical system needs to operate.

Both your facility and the utility company benefit from a high power factor. A lower power factor indicates that your electrical system is not using power efficiently.

Power Factor Correction

Power factor correction entails installing capacitors to your electrical system to reduce the amount of electricity inductive equipment such as motors use.

By minimizing the nonworking power that inductive loads use, the capacitors improve the power factor, reduce the load on the electrical system, and improve power quality.

For example, say your facility uses a working power amount of 120 kW and the meter records the apparent power as 130 kVA. The power factor would be calculated as 120 kW divided by 130 kVA. This means that your equipment uses only 90 percent of the electricity supplied and the remaining 10 percent goes to waste.

Power factor correction helps to increase the power factor percentage so that your electrical system maximizes the incoming electricity. 


Boosting your facility's power factor through the installation of capacitors offers several worthwhile benefits.

Lower Electricity Bill

Electricity companies determine your power bill based on the real power meter readings. However, they also consider the apparent meter readings and charge an extra fee for this.

A low power factor means the apparent meter reading will be considerably higher than the actual amount of electricity your facility uses.

Minimizing inductive or nonreal power reduces the apparent power, increases the power factor, and therefore reduces your electricity bill.

Reduce Upgrade Costs

Capacitors minimize the amount of current each piece of equipment utilizes. The reduction in current flow to each piece of equipment allows you to add new equipment to your electrical system without needing to purchase extra equipment when you want to upgrade your system.

Power Quality Improvement

A higher power factor reduces the amount of current flowing to equipment and, in turn, increases the amount of voltage. Improved voltage means the power passing through your equipment is of a better quality.  

Carbon Footprint Reduction

By maximizing incoming electricity and reducing waste, your facility places less strain on the main power supply grid. This cumulative reduction in the demand placed on power utilities can help to minimize carbon emissions.

Management of production costs is a key goal for any business. One way to realize this goal is to minimize lighting and heating costs through a well-designed power factor correction system.

At Motor Shop Electrical Construction Company, we are committed to helping your facility use electricity to its maximum potential and avoid costly wastages. Get in touch with us today for affordable power correction solutions.