What is Power Factor?

Power factor is used to describe the energy efficiency of the power being used in your home or business. It compares the useful (true) power being used to the total (apparent) power available. The higher the power factor, the more efficiently the equipment uses electricity. Ideally, we want the power factor to be as close to perfect (or “100%”) as possible, which means all the electricity is being used effectively.

For example, a .79 power factor means that only 79% of the electricity that is being drawn through your meter is being used effectively, the other 21% is being wasted! Therefore, increasing power factor is the key to saving money on electricity.

What is a Power Factor Charge?

A power factor charge is a fee adjustment applied to the electricity bill if the efficiency of a customer’s electrical system is less than 95%. This charge can vary widely depending on the size of the facility, ranging from thousands to tens of thousands of dollars per month. Our goal at SPEP is to optimize our clients’ systems to operate at 99% efficiency, thereby eliminating the need for a power factor charge.

How Does SPEP Improve Power Factor?

Our exclusively licensed dynamic energy optimization device uses capacitors to improve how electricity flows from the utility. These capacitors help keep the power supply steady, which is important for handling the changing demands of your facility. As a result, the power factor can increase to as high as .99 (99%) , which means you may not have to pay most, if not all, of the extra charges from the utility company. This not only saves you money but also boosts the efficiency and overall performance of your facility. You’ll notice the reduction in charges right away on your bill. Plus, this unit includes built-in surge protection for added safety.” The dynamic energy optimization device installation typically requires just one day (weather permitting). Once the installation is finished, property owners can immediately observe tangible results.

Before: Prior to dynamic energy optimization device installation the reading shows just .743 (74%)

After: Post dynamic energy optimization device installation the reading shows .992 (99%).

Power factor is used to describe the energy efficiency of the power being used in your home or business. It compares the useful (true) power being used to the total (apparent) power available. The higher the power factor, the more efficiently the equipment uses electricity. Ideally, we want the power factor to be as close to perfect (or “100%”) as possible, which means all the electricity is being used effectively.

For example, a .79 power factor means that only 79% of the electricity that is being drawn through your meter is being used effectively, the other 21% is being wasted! Therefore, increasing power factor is the key to saving money on electricity.

Before and After: Dynamic Energy Optimization device installation: .743 (74%). vs .992 (99%).