Gold Coast (07) 5679 6816

Power factor correction capacitors

Are electrically bills costing your business a lot of money?


One charge that is not understood is “non working power” listed on your electricity bill as a “demand charge”.

A demand charge is a penalty from the utility company in form of a higher cost due to a poor power factor.

Power factor is how effectively your equipment uses electricity

P.F. of 1.0 = Most efficient
P.F of 0.1 = Least efficient

Primarily in an industrial facility with a lot of electric motors and florescent lights your P.F. will begin to decrease.


Power Factor Correction- What does it mean?

The lower the power factor, the higher the apparent power drawn from the distribution network. This means that the supply company must install larger generation capacity, larger size transmission lines and cables, transformers and other distribution system devices, which otherwise would not be necessary. This results in a much higher capital expenditures and operating costs for the Electricity Supply Company, which in many cases is passed on to the consumer in the form of higher tariff rates.

This is the main reason behind why the Electricity Supply Companies in modern economies demand reduction of the reactive load in their networks via improvement of the power factor. In most cases, special reactive current tariffs penalize consumers for poor power factors.

Installing the correct size capacitors will increase your power factor reducing your electricity cost


Advantage of improving your power factor?

  • Reducing electricity costs when charged in kVA demand charge
  • Increased capacity of energy resource
  • Enhanced voltage regulation
  • Contractual compliance
  • Reduced carbon footprint


How we assist to improve your power factor,   

  • Analysis of 12 month electricity bill
  • Size the power factor unit
  • Calculate return on investment
  • Install power factor correction unit


Electrical load classifications that reduce your power factor


  • Incandescent light bulbs
  • Electric heaters
  • Hot water



  • Transformers
  • Air-conditioning and refrigeration
  • Electric motors
  • Electrical equipment requiring a magnetic field
  • Machinery



  • Capacitors are used in electric motors, radio circuits, power supplies and many other circuits. The capacitor is designed to store electrical energy.


Combination Electrical Loads

  • Cable and Conductors
    All conductors have a form of resistance under normal conditions and also exhibit capacitive and inductive effects, but these small effects are generally dismissed for practical purposes.

    Radio Tuning Circuit
    The tuning circuit of a radio uses adjustable inductors or capacitors in combination with a resistor to filter out a range of frequencies while allowing just one narrow band to pass through to the rest of the circuit.

    Cathode Ray Tube
    A cathode ray tube in a monitor or television makes use of inductors, resistors and the inherent capacitance of the tube to control and display a picture on the phosphor coatings of the tube.

    Single-phase motors frequently use capacitors to assist the motor during starting and operation. The start capacitor provides an additional phase of voltage to the motor since it shifts the current and voltage out of phase with each other.


Kw - “Active power” is the type that is doing all the work, rotating the shaft
Kvar -“Reactive power” commonly referred to as “Non working power”
KVA - “Total power” power being supplied by the utility line



For a 100Kw motor with a 0.85 power factor to operate at full load the electricity supplier would have to supply 117 KVA 17% more power due to a 0.85 power factor.

It can be simply calculated 100kw / 0.85 P.f. = 117 KVA

If the power factor was improved to 0.95 the electricity demand would be 105Kva


Why would I have non-working power?

Non-working power is consumed in the motor to excite the magnetic field.

A power factor unit supplies “non working power” to your motor instead of the utility line.

Having a better power factor will reduce electricity cost thus reducing demand charge.

For more information please contact us.



Gold Coast: Toby Di Cola - (07) 5679 6816

Cairns: Daniel Gane - 0408 727 357 - Cairns - Gold Coast


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