Benefits

Power factor correction can help commercial and industrial sites make better use of their electrical supply. The benefit depends on your installation and tariff.

Lower relevant electricity charges. Improving power factor reduces the reactive power drawn from the supply and the apparent power (kVA) needed for the same working load. This may reduce demand charges or reactive-energy charges where your tariff applies them.

More available electrical capacity. Lower current can release capacity in upstream cables and transformers. The usable benefit depends on the equipment ratings and where compensation is installed.

Lower electrical losses. Reduced current can reduce resistive losses and heating in the parts of the installation upstream of the PFC unit. A central unit does not reduce every downstream wiring loss.

Support for voltage performance. Correctly designed compensation may reduce load-related voltage drop. The design should account for harmonics and resonance; it is not a guarantee against supply fluctuations or equipment failure.

Understand the savings. A reduction in kVA is not the same as an equal reduction in kWh. PFC does not normally reduce the working energy your machinery needs by the same percentage. Bill savings should be assessed using your actual tariff, measurements and load profile.