Power Factor Correction: Why the Electricity Bill Cares About It
Power factor is the ratio of the power that does useful work to the total power drawn from the supply. Motors, transformers and some electronics draw extra reactive current, which lowers it. Power factor correction adds capacitors, usually in an automatic (APFC) panel, to supply that reactive current locally, so less current is drawn from the grid.
By Dhruv Agarwal · · 2 min read
Why it matters on a project
Power factor sits on the electricity bill and in the sizing of every transformer, cable and DG set on site. A correction panel that is specified without looking at the actual load is a common reason for failed capacitors, nuisance alarms and a power factor that drifts once the office is occupied.
The idea in one table
| Term | Measured in | What it means |
|---|---|---|
| Active power | kW | Power doing useful work |
| Reactive power | kVAr | Power that circulates to magnetise motors and transformers |
| Apparent power | kVA | Total drawn from the supply |
| Power factor | kW ÷ kVA | How much of what is drawn does useful work |
Correction capacitors supply kVAr locally, so the supply delivers less kVA for the same kW.
What a sound installation includes
- Automatic switching in steps that follow the load, rather than fixed capacitors.
- Detuned reactors where harmonic-producing loads are significant, which in a modern office they usually are. Harmonic limits are discussed in IEEE 519.
- Capacitors and banks to recognised standards, such as IEC 60831-1 for the capacitors and IEC 61921 for low-voltage correction banks.
- Ventilation for the panel, because capacitors and reactors generate heat and their life falls quickly when they run hot.
- A controller set up at commissioning, not left on factory defaults.
Common mistakes
- Plain capacitors on a site full of electronics, leading to resonance and failure.
- Sizing from connected load instead of from measured or estimated running load.
- Over-correction at night and weekends when the load drops.
- No periodic check of capacitor health, so failed steps go unnoticed.
- Panel located in an unventilated room next to the main LT panel.
Standards referenced
Capacitors under IEC 60831-1; low-voltage correction banks under IEC 61921; harmonic considerations in IEEE 519; electrical installations within NBC 2016, Part 8. Tariff treatment of power factor is set by the applicable state electricity regulator. Correction ratings and detuning for a specific site must be established by the project's electrical designer.
Standards referenced
- IEC 60831-1 — Shunt power capacitors of the self-healing type for a.c. systems up to 1000 V (IEC)
- IEC 61921 — Power capacitors — low-voltage power factor correction banks (IEC)
- IEEE 519 — Harmonic control in electric power systems
- NBC 2016, Part 8 — Building services — electrical and allied installations (Bureau of Indian Standards)
Frequently asked
Related
- Harmonic Distortion: The Hidden Load in a Modern Office
- HT vs LT Panel: Where High Tension Ends and Low Tension Begins
- Sanctioned Load: The Power a Building Is Allowed to Draw
- Busbar Trunking: Distributing Power Without a Cable Bundle
- DG Set vs UPS: What Each One Is Actually For
- Cable Derating: Why a Cable's Rated Capacity Is Not Its Real One