How Power factor effects Electricity Bill

To understand the effect of power factor on electricity bill first we need to know the power factor.

So I will make it easier for you.

Power factor is ratio of net energy used by us for work (actual energy) to the total energy supplied to mains (apparent energy).

Numerically Pf = KWH/KVAH.

Pf is denoted by cos (Φ) where Φ is the phase angle between current and voltage.

Apparent energy = Actual energy + Reactive energy

This reactive energy is main culprit for our raised electricity bills.

Electricity Boards levy Huge Penalties for an inefficiently managed Power Factor.

Since Pf is a cosine value so it can never exceed value of 1, it always lies between 0 and 1.

If Pf value is 1 for any load it means the load is completely resistive and 100 percent energy is being used.

If Pf is less than 1 it means that there is some energy loss in form of heat dissipation or something else. To overcome this situation one can install Automatic Power factor Control (APFC) panels. Generally industries use this control panel. This control panel is nothing but capacitor bank.

There are three types of load

  • Resistive load –Pure resistive load has no phase difference so power factor is 1 which is ideal PF. Example of resistive load is bulb, geyser etc. 
  • Inductive load–Generally used for domestic purpose. It has lagging power factor example of inductive loads are fan, motor, A.C. etc.
  • Capacitive load – Pure capacitive load is having leading power factor.

In resistive load no reactive energy is generated, but in case of inductive load more energy is needed to generate the magnetic field. The energy needed to generate the magnetic field is actually reactive energy for which we are paying penalty. So to overcome this situation we can use capacitors because they generate magnetic field so no energy is needed for that and we will be exempted from penalty.

For improving power factor we need to install capacitors of needful value, it will minimize reactive energy production and hence it will decrease energy drawn from grid.

Graphically also we can describe power factor – if current and voltage graph are going parallel than power factor is ok but if these two graphs are going to and fro according to type of load than there is some problem with power factor.

For domestic uses electricity bills are generated for actual energy only, fixed charges and other charges are also included.

As an Entrepreneur, there is always need to constantly monitor the factors, including Power factor, affecting the Energy Bills. Timely correction of these parameters not only minimise the chance of losses but also prevents various penalty charges imposed by Electricity Boards.

Mostly the timely correction of these faults was not possible as it followed the incompetent process of manually noting down the Parameters, which is never consistent.

Here we can help you by providing CLOUD Based Online Energy Monitoring Systems (POWER PROFITS), where you just not only track the real-time Energy Parameters & Consumption Pattern but also the Past Energy Data, according to your need. The alerts can also be raised for the alarming situations with the help of this system.

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About the Author
As a technology entrepreneur, Manish is most comfortable in sensing and responding to the major innovative and disruptive trends in business and Information Technology. Manish has worked on core technical developments on various verticals, viz Automotive, Energy, Industrial Automation and Marine. Which helps in the understanding of customer's requirement and suggesting the best in class solution. As an Entrepreneur, Manish has developed solutions that require a high level of convergence of technologies like Embedded Systems, to Web technologies and Manufacturing Processes. LinkedIn

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