# how to calculate power factor in electricity bill

Given that one of the main purposes of energy efficiency is to save money, power factor correction is typically carried out along with energy efficiency retrofits. It really depends on the amount of wattage that is produced and then the location of the factory. The Load Factor is calculated by dividing the total consumption of electrical energy (kWh) for a given specific time of period to the product of maximum demand (kW) and the number of hours in that period. Not that It is not Daily Rates, It’s the rate of Per Unit Where 1 unit = 1 kWh (Also Called 1 =B.T.U = Board of Trade Unit). Reactive power is a type of power drawn by inductive or capacitive loads - it flows back and forth between the load and the voltage supply, without being consumed. It is found by multiplying (kVA = V x A). How to Calculate Power Factor? Consider the same example and a reactive power cap of 40% of real power. Call us to report a power outage in your area or to get information you couldn't find online. To calculate power factor we use the following formula: Poor power factor at your site can cause voltage fluctuations and power quality issues for neighbouring facilities, which negatively affects their equipment. This is the reason why electric utility customers install capacitor banks to correct power factor. Sometimes operational changes in a facility are all that are needed to improve power factor. Under ideal conditions, current and voltage are “in phase” and the power factor is 100 percent. Real and reactive power are out of phase by 90°, and their vector sum is. You may have an electrician on staff or one you already work with who can do this for you. The result is expressed as kVA units. The following diagram illustrates the concept of power factor: For instance, if we have 40 kW of real power and 15 kVAR or reactive power, the apparent power would be: In this scenario, the power factor would be: If the load is predominantly inductive, the power factor is considered lagging. Mathematically it is the product of voltage drop across the element and current flowing through it. We can also provide referrals through our Alliance of Energy Professionals, which includes qualified contractors that can help you optimize your power factor. Alternatively, the reactive power (kVAR) may be capped in function of the real power (kW). Calculating Power Factor for your Load. The ratio between the “actual work” that you get and the total energy supplied by the utility is called the power factor. A minimum power factor may be required, for example 90%. In order to determine the size of the PV system, divide the required power output by the derate factor. Improve energy efficiency of your electrical system by reducing line losses. Your load factor will impact your electricity bill in two ways: First, your load factor will impact your electricity price ($/kWh). Calculating the reactive power using the reactance details of the load. 3. for instance, If you switched ON a 1000 watt bulb for 1 hour, It mean you consumed 1000 watts for an hour i.e. In this example, the Load Factor is 50% showing that, on average, the peak demand was fully used for 12 hours a day for 30 days. Harmonics filters may be needed in your system to improve power factor if the cause is a non-linear load. TOD - Time of Day. 2. Power = Watts : True Power However, this is not the case for commercial and industrial consumers. In calculating your electricity costs for the billing period, your utility multiplies your electricity cost by an adjustment factor that accounts for those losses. Load factor can be calculated from values reported on practically every electricity bill: LF = kWh / (kW * days * 24) 1. Normally, the minimum power factor is defined by the electric utility company. Bescom Electricity Bill Calculator: Enter the total electricity consumption in units, or enter the initial reading and final reading by choosing: reading Known Option”. Improving the power factor can maximize currents-carrying capacity, improve voltage to equipment, reduce power losses and lower electric bills for members with a current power factor less than 90 percent. Electricity cost calculation The electricity cost per day in dollars is equal to the energy consumption E in kWh per day times the energy cost of 1 kWh in cents/kWh divided by 100 cents per dollar: Cost ($/day) = E(kWh/day) × Cost (cent/kWh) / 100 (cent/$) It is represented by the letter P and measured in kilowatts (kW). It also limits the capacity of our lines to deliver energy to you and to our other customers. The total power your facility draws, also called apparent power, is the square root of the sum of the squares of real and reactive powers. Power Factor is the ratio of kW divided by kVA (kiloVolts*Amps). In either billing approach, the fee paid by the consumer increases as power factor decreases - the bill may rise considerably in the case of large industrial consumers. 2. It is represented by the letter Q and its measurement unit is kilovolt-ampere reactive (kVAR). Divide the kWh of energy use for the month by the result to get the load factor. S = V × I = 240 V × 9.515 Arms = 2.284 kA (3) Power Factor = P / S = 2.0 kW / 2.284 kVA = 0.88 (4) 2. A high Power Factor index (e.g. Some examples are: A qualified electrical contractor can provide power factor correction services and/or equipment. Each month, the company charges this amount due to meter reading, meter maintenance and bill preparation. Volts X Amps X Power Factor = Watts Watts only equals Volts X Amps when the Power Factor is 1 or unity. Large inductive loads such as power transformers and electric motor driven loads such as fans, pumps and air compressors may cause poor power factor. 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