Benefits of power factor correction

Now around the world,hot topic is about energy saving and energy efficiency.The main item very popular for discussion is how to reduce electricity bills.

In industrial sector,the first step to reduce electricity bills is a power factor correction.This post i explain about the benefits of power factor correction for energy saving and efficiency.It also common practice for industrial.

I already discuss in my last post about power factor correction and capacitor sizing for power factor correction.If you understand the concept and how to calculated the capacitor sizing,you also can do it your self for power factor improvement.

Benefits of power factor correction


1) Reduce Electricity Cost

Normally around the world,power distributor  give a penalty cost for low power factor ( below 0.85 ) and charge for maximum demand (kVA).

Power factor capacitors can reduce electricity cost by reducing the maximum demand (kVA ) and maintain power factor above than 0.85 (85% pf) to avoid penalty.

2) Gains in System Capacity

For thermal generated items  such as transformers or cable,power factor capacitors release a reactive power (kVAR) to allow a greater load.It can control the magnetizing current for transformers,cable and induction motor.So capacitors (kVAR) can reduce the current drawn from the power supply.

Less current means less load on transformers and feeder circuits. If a system has an existing overload, the capacitors may eliminate it. If the system is not overloaded, capacitors can release capacity and postpone or avoid an investment in more expensive transformers, switchgear and cable, otherwise required to serve additional loads.

3) Reduce Line Losses

When we applying a suitable value of  kVAR for the point are needed, capacitors relieve the system of transmitting reactive current. The theory is since the current ( I )  in the lines is reduced, I2R losses decrease. We can save the electricity cost for unnecessary power (kWH).

4) Improve Voltage Conditions

Excessive voltage drops can make your motors,electrical and electronic instrument also lighting or others equipment failure or low efficiency.It also can cause them to overheat.

With power factor correction,it will step up  your voltage level, and keep it the electrical equipment running in smooth condition and have a stable voltage.

5) Reduce sizing for cable and transformer

When power factor in efficiency condition,we can reduce the ampere for electrical load.From this we can save the cost for purchase unnecessary cable and transformer size.Because more bigger size it equal to more cost.


  1. haitham hashim says

    Thank you for these efforts,

  2. What are the side effects of power factor correction in addition to harmonics,RFI,EMI etc in automatic capacitor banks?.

  3. Faisal says

    Thanks for these efforts, could you assiss me the advantages of higher power factor at generators eg What are saving by improving p.f form 0.8 to 0.96 of a generator of 500 kVA having a constant load of 350 kW.


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