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Buyer Beware – Using Power Factor Correction and Transient Voltage Surge Suppression to Reduce Energy Costs.

Today’s energy conscious climate has motivated many to do what they can to become more efficient and conserve energy and money. Unfortunately this same climate has prompted others to take advantage of unsuspecting consumers’ wishes to save energy and reduce expenses.

Companies that tout power factor improvement (kVAR correction) and transient voltage suppression are a good example of this bad trend. Lately we are seeing more and more of these companies cropping up and feel it is time to set the record straight.

First, transient voltage surge suppression (TVSS) plays a valuable role in improving power quality to protect sensitive equipment inside a facility. However, TVSS does not save energy. TVSS’s are only active a tiny fraction of a second to protect against voltage surges which only last for less than a millisecond. To actually reduce energy consumption the TVSS would need to actually cut power consumption for an extended period of time which is not what they are designed to do. Again, TVSS is important to protect sensitive electrical equipment but buyers should avoid vendors promising, or even guaranteeing, that they will reduce energy consumption.

Now what about vendors who claim that improving power factor will save 15% or 20% or 30% of energy consumption and corresponding cost? This one is a little trickier.

For residential applications, power factor does nothing to save energy because the typical home already has an average power factor of about 0.97 which is almost the perfect power factor of 1 or unity. In addition, the device (called a capacitor) is placed at the main circuit breaker. According to IEEE 5.5.3.3 capacitors must be situated at or near the respective inductive loads to reduce power system losses by reducing heat and distribution losses known as I2R losses.

So what about commercial and industrial facilities using power factor correction to reduce energy costs? It is perfectly appropriate for a company that is incurring penalties or a kVA billing structure from the utility company to improve the facility’s overall power factor by employing a capacitor bank at the main service entrance or individual capacitors at or near the respective motor loads. Doing so will eliminate the power factor penalties and/or reduce the kVA demand charges on the utility bill which can save significant money and provide a significant ROI on the investment.

But what about power factor correction reducing kWh consumption? IEEE also tells us that I2R losses only account for 2 to 5% of the total load in a facility. Simple math tells us that it would be against the laws of physics to get the 15% to 30% energy reduction claimed by some vendors. Think about it. Even if your facility had 5% distribution losses and you could correct 100% of the problem via power factor correction at every load (which can’t be done) you would still only save 5% at the most. No where near the claims of some capacitor vendors and manufacturers.

All that said, power factor correction when done properly will eliminate utility penalties and kVA demand charges, improve facility power quality, increase electrical system capacity, and save a little energy when applied to the appropriate motor loads.

So make an investment in transient voltage surge suppression and power factor correction when appropriate and necessary. But caveat emptor!

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Many businesses have implemented appetite potency measures in their comforts over the past multiform years to assistance diminution handling losses as well as assist the internal as well as tellurian environment. What the lot of these companies do not know is which sizeable sovereign taxation deductions have been accessible to them as well as additionally which time might be using out.

The Energy Policy Act of 2005 (EPAct 2005) provides generous, evident taxation deductions to businesses for creation appetite potency improvements to their buildings. The sovereign taxation incentives core especially upon potency improvements to lighting, HVAC as well as structure envelopes as well as can be as vast as $1.80 per block foot.

The Emergency Economic Stabilization Act of 2008 lengthened Section 179D as well as EPAct 2005 so the action will not finish until Dec 31, 2013. However, which does not meant which time might not be using out for the little companies.

For businesses which implemented appetite potency projects in 2006 it is illusive they filed their taxation earnings prior to Apr 15, 2007. If they were unknowingly of the deductions during which time, they have been right away during risk of losing those taxation deductions perpetually given the IRS usually allows the 3 year duration to rectify taxation returns.

That equates to if we have not nonetheless nice your 2006 taxation lapse we have usually the couple of months left to do so!

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