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Cut Your Electricity Costs with Power Factor Correction

Changes to the way electricity retailers bill customers are currently being rolled out across Australia. Find out how you can make savings by only paying for electricity you actually use.

What’s Changing?

Up till now, electricity charges have been based on a kilowatt (kW) demand tariff, also referred to as ‘real power.’ This means you’ve only been paying for the electricity you used.

With the changes, payments will now be calculated on the basis of a kilovoltampere (kVA) demand tariff, also known as ‘apparent power.’ This means you’ll be billed for real power and re-active power.

All electrical facilities consume some re-active power. Because this power performs no useful work, it is classed as wasted. If your Power Factor is poor, you’ll be paying for this wasted energy.

What is Power Factor?

Power Factor (PF) is calculated by comparing the power you are using with wasted power. If you get a 0.7 PF, 70% of power consumption is effective and 30% is wasted. You will have to pay more for this inefficient use of energy.

How Can I Reduce Costs?

You can simply and easily reduce costs by installing Power Factor Correction. This will allow you to start saving immediately. Most sites attain saving of 10% - 30%. Rebates are available for some locations.

Why Invest in Power Factor Correction?

Because it makes good financial sense. With a Return On Investment (ROI) within 6 months to 2 years, and permanent savings on electricity, there’s no reason not to invest.

Do I Need Power Factor?

We can help you calculate how much wasted electricity you’re paying for. We provide independent advice based on your specific needs, and our results are measurable.

How Can We Help?

We’re always happy to help you save on electricity costs. We can assess your installation to determine whether you stand to benefit from Power Factor Correction. If so, our experts will develop a tailored solution, outlining how much you will save.

Our Advice

Based on experience, we recommend the Static Var Generation (SVG) units. These are the most current generation of PFC technology. They are superior to older technology which uses switched capacitors with a lifespan of only 3-7 years. Older units are costlier to maintain as they require regular inspections, replacement of parts and ongoing maintenance expenses.

The SVG does not employ switched capacitors and it performs at the highest level with little maintenance required.

The Benefits of SVG:


The SVG works by correcting your Power Factor immediately, producing the best possible results and minimising costs. It can produce an ongoing PF of 0.99, in comparison with older PFC units which achieve a maximum PF of 0.95 due to their delayed response time. Space

The SVG is compact and modular. Its light weight makes it easy to mount on the wall, saving valuable space. In comparison, the capacitors used with traditional systems require a lot of room.


As the SVG does not make use of switched capacitor banks, there are almost no costs to maintain it.


In contrast with the complicated commissioning process for traditional units, the SVG is simple to commission. It’s just ‘Plug and Play,’ and you can monitor how the unit is performing through the LCD panel.

In Summary

· When making a decision about PFC technology, you need to avoid wasting money on inferior equipment.

· The switched capacitors used in traditional systems only last for 3 – 7 years from installation.

· Costly monitoring and maintenance are needed to check the capacitors are functioning properly.

· The SVG system substantially reduces maintenance costs and achieves a PF of 0.99 in contrast with traditional systems which produce a PF of 0.95.

· SVG units operate at peak level permanently, providing ongoing savings year after year.

· The units are simple to install, commission and operate, and you can monitor real-time performance through the LCD screen.

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