Power factor correction is the installation of capacitors or other devices that reduce reactive power in electrical systems, improving efficiency and reducing utility demand charges for commercial and industrial facilities. Most HVAC equipment operates at power factors of 0.85-0.95, creating reactive power that utilities charge separately.
Technical Specifications
Power factor is the ratio of real power (kW) to apparent power (kVA), ranging from 0 to 1.0. Standard HVAC motors operate at 0.88-0.92 power factor. Utilities penalize power factors below 0.95 with demand charge surcharges of 1-2% per 0.01 power factor point. Correcting factor from 0.90 to 0.98 requires 40-60 kVAR of capacitance per 100 kW of motor load.
Capacitor Applications
Fixed capacitor banks improve overall facility power factor. Switched capacitor banks automatically adjust reactive power compensation by 5-20 kVAR steps. Distributed capacitors mounted near individual motors provide localized correction with faster response. Properly sized systems eliminate utility power factor penalties while reducing transmission losses by 2-4%.
Economic Benefits
Power factor correction reduces kVA demand by 10-20%, lowering demand charges $500-5,000 annually for typical commercial buildings. Installation costs $1,000-10,000 depending on system size. Payback periods typically range 1-3 years. Reduced feeder heating improves system reliability and extends equipment life.