ℹ️ About This Calculator
Low power factor means you draw more current from the grid than your actual working load requires, resulting in higher maximum demand (MD) charges on your electricity bill. Electricity boards in India (MSEDCL, BESCOM, TNEB etc.) impose penalty charges for PF below 0.90 and offer incentives for PF above 0.95. Installing a capacitor bank is the standard solution to correct power factor and reduce electricity costs.
Indian electricity tariff structures charge industrial and large commercial consumers for both kWh (energy) and kVA maximum demand. Improving power factor from 0.75 to 0.95 reduces the kVA demand by about 21% — directly reducing the demand charge component of the bill. Automatic Power Factor Correction (APFC) panels use contactors to switch capacitor stages in and out as the load varies, maintaining target PF continuously. Fixed capacitor banks are suitable only for steady loads.
📐 Power Factor Correction Formula
IS 732 / IEEE 1459
Required kVAr: Q_c = P × (tan φ₁ − tan φ₂) Where: P = Active load (kW) φ₁ = cos⁻¹(PF_existing) [existing power factor angle] φ₂ = cos⁻¹(PF_target) [target power factor angle] Q_c = Capacitor bank rating (kVAr) kVA Reduction: ΔkVA = P × (1/PF_existing − 1/PF_target) Annual Saving Estimate: Savings = ΔkVA × Hours × Tariff_kVAh × Load Factor
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