Why Power Factor Correction Matters for Commercial Buildings

Many commercial buildings pay higher electric bills than necessary without realizing why. One common reason is poor power factor an inefficiency that utilities often penalize.

Understanding Power Factor

Power factor measures how efficiently electrical power is being used. A low power factor means:

• More current is required
• Electrical systems work harder
• Utilities may apply penalties or demand charges

How Low Power Factor Increases Costs

Commercial buildings with low power factor may experience:

• Higher utility bills
• Increased demand charges
• Strain on electrical equipment

Over time, this inefficiency adds up.

What Is Power Factor Correction?

Power factor correction uses equipment such as capacitors to improve efficiency by:

• Reducing wasted energy
• Lowering demand charges
• Improving voltage stability

When Is Power Factor Correction Needed?

Buildings that often benefit include:

• Facilities with heavy motor loads
• Manufacturing plants
• Buildings with large HVAC systems

An electrical assessment can determine whether correction is necessary.

Cost Savings and Efficiency

Power factor correction can lead to:

• Immediate utility savings
• Reduced equipment stress
• Improved electrical performance

For many Kansas City businesses, the system pays for itself over time.