Power Factor Correction: Cut Energy Penalties and Free Up Capacity
Power factor is the ratio of useful power to total power drawn. A low value means you're paying for current that does no work — and utilities often bill for it.
Understand the math, the penalties, and the payback of correction capacitors.
The formula
PF = kW ÷ kVA. A PF of 1.0 is ideal; below ~0.9 most utilities apply surcharges.
Worked example
A load drawing 80 kW from 100 kVA has PF = 0.80. Correcting to 0.95 cuts apparent power to ~84 kVA, freeing 16 kVA of transformer headroom.
Payback
Capacitor banks typically pay back within 1–3 years through avoided penalties and deferred transformer upgrades.
Related calculators
Frequently asked questions
What PF should I target?
0.95 or higher avoids most utility penalties while keeping capacitor cost reasonable.
Does PF correction save kWh?
It mainly reduces kVA demand and penalties; in-plant losses fall slightly too.
This guide is for educational purposes. Always verify against the relevant standard before final design.