Power factor correction is crucial for electrical installations to reduce energy costs and greenhouse gas emissions. Companies aiming to demonstrate their green credentials to customers, shareholders, and staff should review their buildings power factor. Part L of the Building Regulations recognises the importance of power factor correction in reducing a business’s carbon footprint. In electrical installations with inductive and/or capacitive loads, power factor correction can reduce maximum demand and currents which can improve performance and reduce energy consumption. Users of electrical installations with inductive loads, such as motors, and those on an energy tariff with authorised supply capacity charges and reactive penalty charges, will benefit from any improvement in power factor.

Electricity installations and equipment often lag the voltage, causing a lagging or inductive current.  Installation of a power factor correction capacitor bank can reduce the inductive or lagging element of current, reducing total current and kVA demand. Electricity tariffs for larger users include fixed standing charges, capacity charges per kVA, charges per kWh for day and night usage, excess capacity charges, excess reactive power charges, and Climate Change Levy.

Power factor correction equipment can save energy and reduce electricity bills in installations with inductive loads. Centrally controlled equipment offers the best payback, while locally installed equipment can save copper losses. However, individual correction methods have limitations, and an action plan should be confirmed, identifying low power factor loads, and monitoring energy savings.