With energy prices at the highest levels on record, and projections for a steady increase of almost 4% a year for the next 20 years. The average power bill will cost your company over $115,000 in additional energy expenses, just for using the same amount of energy you use today.
Additionally, utility companies are starting to charge penalties to companies with inefficient power usage. Your Power Factor is a rating of your facility’s total power efficiency. Power Factors below .80-.85 are charged penalty fees by the utility company because they are drawing more current than they are actually using.
Inefficient equipment demands more current than it actually needs, which forces the utility to increase the amount of power supplied to your facility. This costs the utility in infrastructure and construction costs and the Power Factor Penalties are designed to help offset these costs. The minimum allowed Power Factor can either be set by the utility or local government. Fluorescent lights, electric motors, variable speed drives, computers, elevators and HVAC equipment all lower your building’s Power Factor and increase your electric bill.A mid-sized industrial facility with a Power Factor of .82 would amass Power Factor Penalties of over $31,000 in just 5 years.A large consumer would reach $180,000 in fees in the same amount of time. This chart shows how quickly the return on investment can be when solving Power Factor Problems.
Your company wants to be green and use energy more efficiently, and we at ECS applaud those endeavors.But we also know that building windmills and solar panels are cost prohibitive for most companies. So why not start by correcting total facility energy efficiency? By having Power Factor Correction technology equipment installed at your facility, not only will you eliminate the costly Power Factor Penalties you are being charged, you’ll use less power as a whole, and create more room to grown and expand in the future!
Combat the inefficient equipment in your facilities by correcting the Power Factor. The typical Power Factor can be corrected to at least .97 by reducing the amount of inductive current created by electrical components that are found in the offending equipment.
This will make your entire facility more energy efficient, reduce your energy bills, eliminate your Power Factor Penalties, reduce line loss throughout your facility, and double the life of your electrical equipment, particularly the motors found in many devices
The Return on Investment for Power Factor Correction can be anywhere from 6 months to 3 years, but we’ve rarely seen it take longer than 18 months. The best part is, after the equipment pays for itself, the savings go directly to reducing your bottom line… For life.