Power Factor is a measurement of how effectively incoming power is used in your electrical system and can be defined as the ratio of real (working) power to apparent (total) power.
Before Aussie NRG
From the comparison above, looking at the ‘Network Charges’ and the ‘highest metered demand,’ significant savings can be achieved, and from the example above the amount is about $8,986.80 per annum.
What is power factor?
'Real Power' (kW) is the power that actually powers the equipment and performs useful, productive work. It can also be called 'Actual Power', 'Active Power' or 'Working Power'. Whereas, 'Reactive Power' (kVAR) is the power required by some equipment (e.g. transformers, motors and relays) to produce a magnetic field to enable real work to be done. It’s necessary to operate certain equipment but you don’t see any result for its use.
'Apparent Power (kVA) is the sum of Real Power (kW) and Reactive Power (kVAR) and is the total power supplied by your retailer through the mains and is reflect on your bill and the amount you pay.
Power factor Correction (PFC) aims to improve power factor, utilizing capacitors to offsets usually inductive loads, such as machinery motors. PFC systems increase the efficiency of the power supply, delivering immediate cost savings on electricity.