Low Power Factor at facility

We have a lot of motors in our plant, and our utility mentioned that our power factor is low. I’ve heard that installing capacitor banks can help, but I’m not sure how to figure out if it’s worth it. How do other manufacturers approach power factor correction, and what benefits have you actually seen?

Power factor correction can reduce utility penalties and free up electrical capacity, but it’s most cost-effective when your low power factor is consistent and significant. The usual process is to log your plant’s power factor over time, identify peak demand periods, and size capacitor banks accordingly. Do you know your average and lowest power factor from recent utility reports?

Thank you so much for a quick response. I’ll check with our utility about the reports. Once we know our average and lowest power factor, how do we figure out the right size for a capacitor bank without over- or under-investing?

The size of a capacitor bank is based on the kVAR needed to bring your power factor closer to 1.0 during your peak demand periods. This requires reviewing your utility’s interval data and sometimes logging additional load information to see when and why your power factor drops. An assessment team or electrical contractor with experience in industrial systems can run the calculations for you and recommend fixed or automatic capacitor banks. If you’d like, I can connect you with ITAC team in your area who can perform a no cost energy assessment for this.