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Power Factor Correction

Many commercial and industrial sites have an up-tapped potential to earn money from power factor correction.

Power factor It is a measure of how efficiently electricity is being converted into useful work output. It is measured as the ratio between the kW and the kVA drawn by an electrical load where the kW is the actual load power and the kVA is the apparent load power. Power factor typically ranges between 0.5 and 0.99.

Power factor is important for many commercial customers on demand tariff billing structures as a lower power factor results in higher electricity bills. If your bill includes a ‘$/kVA’ tariff, then you are paying for power factor.

Power factor correction (PFC) involves installing capacitors and control equipment at the site to improve power factor and hence reduce electricity costs. Commonly, PFC equipment can pay for itself in under 12 months.

PFC solutions can be supported in two ways:

  • an ideal leased solution because the payback for the technology far exceeds any lease repayments, meaning cash in the hand straight away; or
  • with Energy Savings Certificates in NSW, which can be attractive for larger installations in certain circumstances.

Demand Manager is accredited to create ESCs for PFC installations.

Contact us for a free assessment of your site’s PFC.




  • Demand Manager

    Demand Manager helps organisations to realise energy and water savings by bringing finance to clean energy projects.

    Office: Suite 1, Level 7, 12-14 O’Connell Street Sydney

    PO Box: Q1251 QVB Post Office NSW 1230

    Phone: +61 2 9279 4704

    Fax: +61 2 8076 7460

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