You may have noticed some additional charges on your monthly energy bill for power factor penalties. This is a charge for having a power factor that is less than a specific preset amount, usually somewhere around 80-90%. This is referred to as power factor penalties due to the fact that it is a penalty that is added to the energy bill for having less than optimal power factor. The details of the power factor penalties will be outlined in the contract that you have with your power supplier.
What Can Be Done to Eliminate Power Factor Penalties?
There are special devices referred to as capacitors that can be installed in order to improve a poor power factor. Power factor penalties are put into effect as a kind of incentive that is intended to encourage power customers to pay better attention to their power factor. Most customers would prefer to install a power factor correction system instead of paying a penalty on their energy bill. It is important to note that power factor correction can be complicated, so you should always consult with a professional for the best results.
What is the Cost of Power Factor Penalties?
Power factor penalties are typically structured as additional demand charges. If the original demand charge is $5 per kW every month, then a power factor penalty may add an increase of $2 per kW for a total cost of $7 per kW every month. This is the penalty that you would pay for having a low power factor.
