Home › Electrical Engineering Forum › General Discussion › Create a simple on-line calculator to evaluate cost savings obtained with Power Factor correction › Re: Create a simple on-line calculator to evaluate cost savings obtained with Power Factor correction
No..the energy saving is by reducing the losses in the system also. However, saving from Max demand reduction may be higher than the saving by reduction in losses in case of small installations.
Just a point to watch. I have seen a number of people install power factor correction equipment in the hope of making savings and see next to no saving in their electricity costs simply because they were on a kW tarrif rather than a kVA tarrif. There should be something in the calculator to alert people to thoroughtly understanding their tarrif structure.