Power Factor Correction What is Power Factor?

Power Factor is the ratio of the actual electrical power dissipated by an AC circuit to the product of the r.m.s. values of current and voltage. The difference between the two is caused by reactance in the circuit and represents power that does no useful work.

Does Your Business Need Power Factor Correction?

Taking control of and monitoring Power Factor can lead to reduced kVA demand and therefore reduced electricity costs. Improving Power Factor can lead to savings on your business electricity bill.

Installing Power Factor Correction Equipment can be a cost effective measure to reduce your business electricity bill. Power Factor Correction projects with short payback periods, in some cases approximately one year.

PFC graph 700 px lo resPower factor is the measure of how effective incoming power is being used at a site; it is expressed as a numerical value between zero and one. The closer a power factor is to one, the more efficiently a business is consuming electricity. A power factor between 0.95 and one is more cost effective. Learn more about Power Factor.

A poor power factor can negatively impact electricity bills.

Power Factor Correction (PFC) equipment

Power factor can be improved by installing PFC equipment called Capacitor Banks. Capacitor Banks work to correct energy supply inefficiencies, while also reducing peak demand on the electricity network.

We offer businesses the opportunity to receive funding to assist with the installation of PFC equipment. Check below if you’re eligible!

Are you eligible?

To be eligible to apply for Energex funding you will need to answer YES to the below questions.

  • Is your business located in an eligible suburb? Contact e Energy the Power Factor specialists today
  • Does your business have an Australian Business Number (ABN)?
  • Is your business on a demand based tariff (tariff 1000, 3500, 4000, 4500, 8000, 8100, 8300)? Contact your electricity retailer to find out what network tariff you are on.
  • Application to be submitted by the customer whose site the equipment is being installed on, not by the supplier or installer on behalf of the customer.


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