Why Improve your Power Factor?
By improving the power factor the site KVA demand will reduce (total power demand) and consequently the kVA service capacity can be reduced. (£ saving).
Utility companies can, and invariably do, impose a reactive sine-wave charge for users with a power factor of less than 0.95 lagging. If correctly specified the new power factor will be above 0.95 lagging and therefore no reactive charges will be incurred. (£ saving)
Reduces I2R losses in conductors and consequently will reduce kWh consumption (£ saving) As current flows through conductors, the conductors heat. This heating is power loss which is proportional to current squared (PLoss=I2 R) and the current is proportional to P.F.
Reduces loading on transformers freeing up availability by reducing KVA (total power demand). This can often lead to financial saving as the requirement to increase the site supply to meet future loads is reduced.
Reduction in CO2 emissions produced in the generation of reactive current.