Power Factor

Why is Power Factor Correction Important?

Power factor is a measurement of how efficiently a facility uses electrical energy. A high power factor means that electrical energy is utilized effectively, while low power factor indicates poor utilization of electric power. Low power factor can cause increased voltage drops and lost energy; as well as equipment overloads and overheating that shortens service life of motors, cables, and other equipment. Raising your power factor increases the capacity of your system, reduces the amount of lost energy, and lessens the amount of energy used.

Reasons to Improve Your Power Factor:


  • Your electric utility bill will be smaller. Utilities can charge large customers with low power factors an additional fee due to the required increase in the electric utilities transmission and distribution capacity to handle your reactive system.
  • Your system loss will decrease thus minimizing voltage drops. Ensuring your motors will run cooler and be more efficient.

How ECHOSM Can Help

Utilizing historical performance and billing data from your utility, ECHO can provide a Power Factor Analysis for your organization, quantifying the possible cost reductions available through Power Factor Correction. We will recommend ways to improve your Power Factor, including equipment upgrades and capacitor based infrastructure if appropriate.

ECHOSM will recommend ways to improve your Power Factor, so that you can realize the financial and sustainability benefits. For more information, please contact ECHOSM at 877.324.6487.

Power Factor Explained:

The motors and other inductive equipment in a facility require two kinds of electric power. One type is working power (kW). This is what actually powers the equipment and performs useful work. Secondly, inductive equipment (transformers, motors, and relays) needs reactive power (kVAR), to produce the flux necessary for the operation of inductive devices. The working power (kW) and reactive power (kVAR) together make up apparent power (kVA). Most AC power systems require both kW (kilowatts) and kVAR (kilovars) resulting in power factor. The ratio of actual power to apparent power is your power factor. Reducing the apparent power (kVA) required will increase the power factor.

Power Factor