What is Power Factor in simple terms?

Think of it as electrical efficiency. A Power Factor of 1.0 (or 100%) is perfect efficiency. A low Power Factor means your building's equipment is drawing more current than it needs to do the work, and the municipality penalizes you for this inefficiency.

What causes poor Power Factor?

It is typically caused by inductive loads, which are common in commercial buildings. This includes things like older fluorescent lighting ballasts, HVAC motors, pumps, and elevators.

Does improving my bulk Power Factor affect my tenants' bills?

No. You are correcting the efficiency at the main incomer, which only lowers your bulk bill. You continue to bill tenants based on their NERSA-compliant tariffs. The savings you generate on the bulk bill are pure profit for the landlord.

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A Deep Dive into Power Factor & Demand Analysis

Stop paying unnecessary penalties on your bulk utility bill. This page details the Power Factor & Demand Analysis tool, a core part of our Energy Management suite. It tracks your property's efficiency (PF) and peak demand (kVA) to help you directly lower costs and maximize profitability.

The Financial Importance of Power Factor & Demand

For landlords of commercial and industrial properties, Power Factor and Peak Demand are critical financial metrics. Municipalities bill large properties not just on how much energy they use (kWh), but on their peak demand (kVA) and electrical efficiency (Power Factor). Poor Power Factor inflates your kVA, leading to heavy penalties on your bulk bill that can destroy your profitability.

Directly Lower Your Primary Utility Cost

Analyzing and correcting poor Power Factor or reducing Peak Demand on your bulk supply is one of the fastest ways to lower your main utility cost. This widens the P&L 'gap' between your costs and your tenant revenue, directly increasing the profitability of your entire operation.

Build the Business Case for Investment

Power Factor Correction (PFC) equipment is a capital investment. Our analysis tool provides a clear, data-driven report that quantifies the monthly savings you will achieve by improving your Power Factor. This gives you a precise ROI calculation, making the business case for investment undeniable.

Localized E-E-A-T Fact

In South Africa, many municipal tariffs include explicit penalties for Power Factor below 0.95. For a medium-sized commercial building, correcting a poor Power Factor from 0.80 to 0.98 can result in a 15-20% reduction in demand charges, often leading to a payback period of under 24 months for PFC equipment.

How Our Analysis Tool Works

The platform gives you a clear, actionable view of these complex metrics.

Track Real-Time

We track your bulk supply's Power Factor and kVA demand in real-time, 24/7.

Visualize Demand

The platform visualizes your demand profile, showing you exactly when your peak demand occurs and for how long.

Calculate Cost

It calculates the financial cost of a poor Power Factor, showing you the money being wasted on reactive power charges.

Forecast Savings

The report provides a clear savings forecast, modeling the financial benefit of correcting your Power Factor to an optimal level (typically >0.98).

Frequently Asked Questions

Ready to Stop Paying Power Factor Penalties?

See how our Power Factor & Demand Analysis can help you reduce kVA charges and maximize profitability.