Power factor is one of the most overlooked indicators of electrical performance in agriculture, processing plants, and industrial facilities. Yet it plays a direct role in utility costs, equipment lifespan, and how much usable electrical capacity a facility actually has. The advantage for producers is clear: poor power factor is completely fixable, and the improvements often pay for themselves faster than most electrical upgrades.
Understanding Power Factor
Every electrical system relies on real power, reactive power, and apparent power. Real power performs the actual work such as running motors, heaters, and lighting, while reactive power does not create useful output but is required to energize magnetic fields in motors and transformers. Together they form apparent power, which is what utilities must supply to meet a facility’s full electrical demand.
Power factor is the ratio of real power to apparent power, and a higher value indicates more efficient energy use. A perfect score of 1.00 is ideal, while ratings below 0.90 lead to unnecessary costs and increased strain on electrical infrastructure. Facilities with motor-heavy processes, including conveyors, fans, compressors, pumps, and dust systems, naturally carry higher reactive loads and often see their power factor fall below utility thresholds. Even modern technologies like LED drivers and VFDs influence PF.
Why Low Power Factor Costs Money
Utilities size and bill their networks based on total kVA, not just the useful kW a plant relies on. When the power factor is low, more kVA is required to deliver the same amount of real work. This results in higher demand charges, additional surcharges, hotter-running electrical equipment, and reduced system reliability.
A simple example illustrates the impact. A plant needing 300 kW of real power at a power factor of 0.78 must draw roughly 385 kVA. Only 300 kW is doing productive work, while the remaining 85 kVA represents wasted capacity that still appears on the utility bill.
How Capacitor Banks Improve Power Factor
Capacitors counteract the lagging reactive power drawn by motors, bringing power factor closer to ideal levels. Properly applied banks reduce total kVA demand, stabilize voltage, extend equipment life, and free up electrical headroom for future expansion. Facilities can choose from fixed capacitor banks, automatic and multi-step systems, or harmonic-filtered banks for plants with significant VFD usage.
Why Power Factor Correction Offers Fast ROI
Improving power factor reduces monthly utility costs immediately and lowers the thermal and mechanical stress on transformers, switchgear, and distribution equipment. Many facilities report more stable electrical performance, fewer nuisance trips, and reduced risk of unplanned outages. In most cases, the investment pays for itself in twelve to twenty-four months, and in some operations the payback is even faster.
What Current Group Delivers
Current Group provides a complete turnkey approach to power factor improvement. We begin with power quality recording to measure real kW, kVA, kVAR, load balance, and PF under real operating conditions. This is followed by a utility bill review to identify penalty charges and understand where savings can be realized. A detailed load study and motor inventory allows us to pinpoint the equipment responsible for reactive demand.
From there, our engineers design a customized correction strategy that sizes and selects capacitors based on actual plant behaviour rather than theoretical assumptions. Installation is carried out with attention to placement, ensuring correction is applied where it is most effective. Commissioning confirms the improvements, and optional monitoring equipment allows operators to track PF performance and kVA reductions in real time.
To see how these improvements perform in a real facility, explore our recent power factor correction project at Alliance Seed Cleaning Plant, where targeted capacitor solutions eliminated penalties and increased electrical capacity.
The Result
Power factor typically rises to 90% or higher, utility penalties are reduced or eliminated, electrical stress decreases across the system, and operators gain usable capacity without major upgrades. Facilities benefit from cooler-running equipment, more stable voltage, and a stronger electrical foundation for future expansion.
Ready to Improve Your Power Factor?
Current Group specializes in electrical optimization for agriculture, processing facilities, and industrial operations across Alberta. If you want to reduce costs, improve electrical reliability, and extend the service life of your equipment, contact Current Group today to book a power assessment or request a quote.
