This meant in huge increases in the power bills of thousands of businesses across Queensland. And what you’re paying so much extra for is just…foam.
New South Wales has had demand charges for years. Do you know what you’re being charged for foam?
kW is Working Power (also called Actual Power or Active Power or Real Power). It is the power that actually powers the equipment and performs useful work.
kVAR is Reactive Power. It is the power that magnetic equipment (transformer, motor and relay) needs to produce the magnetising flux.
kVA is Apparent Power. It’s the “vectoral summation” of kVAR and kW.
A simple analogy in order to better understand these terms is The Beer Analogy – see diagram.
The Power Factor (P.F.) is the ratio of Working Power to Apparent Power
Beer ÷ (Beer + Foam)
So the more foam you have, the lower the power factor. A power factor under 0.8 is typical without power factor correction and 0.95 to 1.0 after power factor correction.
A business’s power factor can be improved by installing Power Factor Correction (PFC) equipment. PFC equipment works to correct energy supply inefficiencies on site. Compared with other options, this is a relatively low cost solution to help manage and reduce your power bill.
Power Factor Unit
Inside a Power Factor Switchboard showing Capacitors
Note, since we are in the business of saving you money and not in the business of pushing PFC equipment sales, AIRS Electrical will not recommend the installation of PFC equipment if we don’t believe there is sufficient scope for energy savings to justify the capital outlay.
Some businesses will benefit significantly more than others from power factor correction, but others may not. A free energy audit will tell us whether this is the right solution for your business.