How is Power Factor Improved?

Power Factor Correction (PFC) is achieved by the addition of equipment capacitors which generate Reactive Power within your premises. This compensates for the reactive power demand of the inductive load and thus reduces the amount of KVA which much be supplied by the distribution network.  The cost of PFC equipment will be offset by these savings in network charges.   The payback period on equipment is usually less than 24 months

Power Factor improvements reduce the currents through your site transformers and switchboards and hence can reduce the costs of electrical supply upgrades.  Sites who improve power factor often report the disappearance of many niggling faults, which were unknowingly being triggered by electrical hotspots or high currents.

Typically the corrected power factor will be between 0.95 and 0.98.


Customer – BPA Manufacturing Pty Ltd
The manufacturing firm has a real demand for electrical energy of 1525kW with a power factor of 0.69.  Since PF = kW/KVA, the KVA demand or apparent power required to produce the real power would be 1525/0.69 = 2210 kVA.  The target power factor is 0.95 to 0.98, which will reduce this kVA  and thus increase the available real power from the transformer.

The power factor correction size required is 1100kVAr’s (Reactive Power).  After correction the apparent power required to produce 1525kW of real power is reduced to 1605KVA, a saving of 605KVA.  The estimated savings per year based on $62 KVA per year would be $37,500.  Given the installed cost of power factor correction of $58,300, the payback time would be under 19 months.

What should I Do?

  • Simply download and fax the authorisation form to enable us to proceed with a free quote showing your costs, savings and payback period.
  • Or:

  • Email us at
  • Or:

  • Call our office on 0356742133









PFC Unit














Epcos Logo