Power Factor Correction Savings Calculator — Estimate kVA and Demand Savings
See how improving power factor changes apparent power and estimate potential demand-charge savings when the utility bills on kVA or another user-defined demand basis.
Correction scenario
What power factor correction changes
At the same real power, improving power factor reduces apparent power. That can reduce the kVA basis used by some demand-charge structures and can also reduce current in parts of the electrical system.
What stays the same in this model
Real kW demand is held constant. The calculator therefore models the demand-basis change rather than claiming that correction itself reduces useful real power consumption.
Why the savings can vary
The financial benefit depends on the original power factor, corrected power factor, real demand, billing months and demand-charge basis.
Worked example
At 500 kW, improving PF from 0.78 to 0.95 changes modeled apparent power from about 641 kVA to about 526 kVA, a reduction of roughly 116 kVA.
Limitations
Correction equipment has losses and operating costs, and a utility may use a different billing formula. Those details should be added to a project-specific assessment.
Frequently asked questions
Does PF correction reduce kWh automatically?
Not in this model. Real kW demand is held constant.
Can corrected PF be lower than existing PF?
No. Enter a corrected PF greater than or equal to the existing PF for a correction scenario.
Does this size capacitors?
No. It focuses on savings and apparent-power reduction.