CommercialTips

How to Calculate Your Power Factor Savings From Peak Demand Charges

By in Commercial, Tips

Is your commercial electricity bill through the roof? What if I told you that you could save over $57,000 a year simply by installing Power Factor Correction equipment? You wouldn’t believe me, would you? Well, now you can! Australian Business owners are saving thousands of dollars a year with Allied Power Factor Correction Units. Here’s how you could save money too…

Step 1: Work out what your Power Factor is.

What is Power Factor?

Your Power Factor is the difference between the ‘real power’ you use and the ‘reactive power’ that is supplied to your business premises. It is measured on a scale between 0 and 1. The higher your power factor, the more efficient your business is. For example, a business with a Power Factor rating of 0.8 is using only 80% of the power supplied to their premises but is paying for 100% — that’s a crazy and unnecessary expense!

Doing the maths

The easiest way to calculate your Power Factor ratio is to chat with one of our friendly Power Factor experts. At Allied Construction and Roofing, we will look over your business’ energy bills and use our technical know-how to work out what your Power Factor ratio is so that you don’t have to!

However, with some simple calculations you can realise the savings yourself. A good general rule of thumb to follow is:
Power Factor = real power (kW) total supplied power (kVA).

 

Step 2: Power Factor Correction

 

How to save money

A poor Power Factor can be improved by adding a Power Factor Correction Unit to your distribution system. This will help to stop your electricity company from supplying you with extra electricity and free you from having to pay for it. In other words, you’ll have savings!

 

So what’s the dollar figure?

Because every business consumes energy differently, it’s impossible to determine what your dollar savings will be without looking through your consumption data (i.e. the evidence). Put simply, we cannot guarantee an exact dollar-value saving by installing a Power Factor Correction Unit.

However, to give you an idea of how much you could be saving here is an example:
A company with electricity bills of $26,835.32 with a conservative Power Factor of 0.775 would save $4,779.37 per month by installing a Power Factor Correction Unit — that’s over $57,000 a year or the equivalent of a full-time employee!

 

Step 3: Get your free energy assessment

 

Your savings could be massive, get in touch today!

At Allied Construction and Roofing, we offer free energy assessments for business owners who want to save money and lower their energy bills. Our expert team will take your Power Factor ratio and energy bills, and test them against our Power Factor Correction Units to see how much you could be saving.

All you need to do is give us a call on 1300 650 114, or submit an online enquiry today to get a free check, measure, and quote.