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Why Improve Your Power Factor? Some of the benefits of improving your power factor are as follows: Your utility bill will be smaller. Low power factor requires an increase in the electric utility’s generation and transmission capacity to handle the reactive power component caused by inductive loads. Utilities usually charge a penalty fee to customers with power factors less than 0.95. You can avoid this additional fee by increasing your power factor. Your electrical system’s branch capacity will increase. Uncorrected power factor will cause power losses in your distribution system. You may experience voltage drops as power losses increase. Excessive voltage drops can cause overheating and premature failure of motors and other inductive equipment. Search " Capacitor " here !!The U.S. Department of Energy’s Motor Challenge Program Motor Challenge is a partnership program between the U.S. Department of Energy and the nation’s industries. The program is committed to increasing the use of energy-efficient, industrial electric motor systems and related technologies. The program is wholly funded by the U.S. Department of Energy and is dedicated to helping industry increase its competitive edge, while conserving the nation’s energy resources and enhancing environmental quality.
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