Lower power factor means your business is not using its electricity supply as efficiently as it could. You are paying a higher capacity charge than is necessary and paying more than you need for your electricity.
It also means you are not meeting your user obligations under the Service and Installation Rules of NSW (section 1.10.11) which states it is mandatory for electricity users to maintain a power factor of at least 90% (or a factor of 0.9).
The Benefits for Correcting Power Factor
There are many business benefits for correcting your power factor, which include:
• Managing your supply more effectively to help lower electricity costs;
• Installing power factor correction equipment is a capital investment to your business, thereby increasing total invested capital;
• Depending on the size of your business, small businesses may be eligible to claim an immediate tax deduction for the purchase of a Power Factor Correction asset. Refer to www.budget.gov.au for more information;
• The typical payback period for power factor correction equipment is as little as 1-3 years, making it a very desirable investment option for your business with net cash flow benefits after payback; and
• Freeing up spare electrical capacity for any future expansions at your site.
How to Assess Your Power Factor
We encourage customers to have their power factor correction assessed. Ausgrid can provide a complimentary site specific report which calculates your power factor and if applicable, suggested options for a correction solution. To see example of a report click here, or to request a complimentary site report click here.
If you would like to find out how to get started with finding the right power factor solution, visit How to Get Started where you will find guidelines to help you on your way.
If you are directly seeking a service provider, you can refer to our Register of Power Factor Service Providers.