Understanding Power Factor
Power factor measures how effectively electrical power is converted into useful work. Poor power factor results in higher utility bills and equipment stress.
Identifying the Problem
Review utility bills for power factor charges or penalties. Many industrial facilities with motors and inductive loads have power factors below 0.90.
Correction Solutions
Capacitor banks and active power factor correction systems typically cost $5,000-$50,000 depending on facility size, with payback periods of 12-24 months from eliminating penalties alone.