Current with-without KVAR - From Peter - PRP Revised 02-14-12

Power factor is an indicator of how much of a power system’s capacity is available for productive work. Read as a percentage, the closer a system or motor’s power factor is to 1.0 or 100%, the more efficient the system is. Having a low power factor is undesirable because it increases a load on a building’s electrical system, and puts excess strain on the utility company providing the power.

To encourage customers to reduce their use of reactive power, or to optimize power factor, many utility companies have introduced reactive power charges, also known as power factor penalties. In most cases, medium to large size commercial customers are billed extra for having a low power factor such as when their power factor, or efficiency level, is less than 95 percent.

A facility subject to power factor penalties, with a significant number of induction motors typically has different options. Sometimes, the problem is solved by purchasing new, properly-sized, premium efficiency motors. Other cases might require variable frequency drive (VFD) induction motors, rotary condensors, or other dynamic volt ampere reactive (VAR) devices.

At KVAR Energy Savings, we take pride in being able to provide the most cost effective, proven solutions possible, which is to properly size, in real time, at the customer’s loads and or panels for the exact amount of capacitance required to optimize the power factor of such loads, to unity, or 100% efficiency. Our proven approach to energy efficiency can eliminate penalties, while providing additional savings and other benefits to the customer’s infrastructure, along with the best pay back period in the industry, typically around 36 months or less. In fact, most of our customers realize savings ranging from 6-25% of their cost to operate individual pumps and motors regardless of whether or not they face reactive power penalties.