The reality is, if you don’t know the power factor of your business, you could be hemorrhaging money. Power factor is a measurement of how efficiently you're using the energy you're paying for. And if you have a poor power factor rating, that means you're wasting money on power you're not even using. Yikes! So let's take a deeper look at what power factor is, what the numbers mean, and how to find out what the power factor of your business is.
Power factor is a ratio that tells you how efficiently your business is converting supplied electricity into useful work. It is measured as a ratio of real power (in kilowatts, kW) to apparent power (in kilovolt-amperes, kVA). Real power is the actual power that performs work, such as running motors or powering electronic devices, while apparent power represents the total power flowing in the circuit—including both real power and reactive power.
Here’s an easy way to think of it: imagine your business as a car engine. Apparent power is the gasoline, or the total power supplied to your business—which includes not only what you use (real power) but also some power that doesn't contribute directly to your work (reactive power). The real power is the actual horsepower created by the apparent power that actually drives your car. The power factor number indicates how well the gasoline is being used to power your vehicle—or how efficiently power is being used to power your company’s operations.
Power factor is expressed as a dimensionless value between -1 and 1. A high power factor, close to 1, means your business is using electricity efficiently. On the other hand, a low power factor, closer to 0 or even in the negatives, suggests that a significant portion of the electricity you're paying for isn't directly contributing to your business operations—potentially leading to higher energy costs.
A good power factor number is one that approaches or equals 1.0. When a business or electrical system has a power factor between .9 to 1.0, it means that the real power (useful work) is effectively utilizing the supplied apparent power, minimizing wasted energy. A higher power factor means greater efficiency in converting electrical energy into useful output, leading to reduced energy costs, optimal use of equipment, and a lighter burden on the overall power distribution network.
A bad power factor is one that is between .8 to -1. However, it’s important to know that even a power factor of .7 is quite low and already indicates that a significant portion of your supplied power is reactive—and not contributing efficiently to the useful work of your business. This inefficiency can lead to increased energy costs, reduced system capacity, and inefficient operation of electrical equipment.
The easiest way to determine the power factor of your company’s facilities is to use a power meter. Power meters such as Electripure’s CleanPQ™ system provide a wide array of data about your energy system, including real power (kW) and apparent power (kVA). You can then calculate the power factor by dividing the real power by the apparent power, although most meters will do this calculation for you.
If your business has a low power factor (at or below .7), you can implement a few power factor correction measures.
Understanding power factor and acting on it are two separate things, and Electripure can help with both. We have experts on call to come inspect your facility (for free)— we’re ready to set you up with our proprietary tech that can read energy data like your power factor in real time and give you actionable steps that could save you up to 20 percent on your monthly power bill. When you're ready to get your money out of the energy you've already paid for.
Contact us today and schedule an appointment