Power Factor Penalties: Avoid the Unavoidable

Power Factor Penalties

Avoid the Unavoidable

It is common to see companies paying exorbitant penalties for poor Power Factor (PF) and we have solutions to eliminate these expenditures for the next 20+ years.

The more inefficient you operate; the lower your PF. Low PF results in higher penalties from the Utility. Equipment with motors (i.e. air conditioners, presses, machines) is usually the culprit of poor PF. Fortunately, there are proven ways to correct poor PF that offers excellent returns with no impact on your equipment or daily operations. In fact, correcting your PF could also extend the life of your equipment and slightly lower your usage, all because you have more efficient incoming power.

Sometimes PF is listed on your Utility/Supplier bill, if not, QuotEnergy can do the calculations for you to define the penalty you pay each month.

Contact us so we can help you with determining your Power Factor Penalties and possible solutions.


  • QuotEnergy has a client that spends up to $180,00/year in Power Factor Penalties.
  • Installing the proper equipment, with no disruption to the facility, eliminating this cost and the equipment payback was <12 months.

What is Power Factor?

PF is a measure of how efficiently power is used. The more efficiently you consume your energy, the lower the PF.

Imagine a horse pulling a train car down a straight track. The most efficient way to pull the train car is when the tow rope is in the same direction as the tracks. The further the horse moves to the side of the track direction (i.e. increases the rope angle) the harder he has to pull the train to get it to move the same distance. The angle between the track and pull direction is a measure of inefficiency also known as power factor penalty. The goal is to get as close to 1 as possible, a Power Factor >0.95 is excellent and eliminates those unnecessary penalties.

QuotEnergy has proven solutions to achieve a PF >0.95 and would be happy to discuss with you. Simply contact us to learn more.

Contact Us