Make your home more efficient with power factor correction

What is power factor?

Power factor is a way to calculate energy efficiency and shows how well your home uses electricity. A high power factor means most of the electricity is doing useful work, while a low power factor means some energy is wasted.

A simple way to understand power factor

Think of power factor like this: if your home uses 100 units of electricity but only 75 units do useful work, your power factor is 75%. The other 25 units are just floating around, not helping.

How to measure power factor

You can measure power factor with tools like a wattmeter, voltmeter and ammeter. Here’s how:

• Use the wattmeter to check real power (watts).
• Use the voltmeter to check voltage.
• Use the ammeter to check current.
• Multiply voltage × current to get apparent power.
• Divide real power by apparent power to get your power factor.
• Turn that number into a percentage.

How to calculate power factor in your everyday life

Jessica wants to know how her older kitchen appliances use energy. She gathers the following information: 

• Real power: 720 watts
• Voltage: 120 volts
• Current: 8 amps
   

She does the math:

720 ÷ (120 × 8) = 720 ÷ 960 = 0.75 or 75%

This means only 75% of the electricity is doing useful work, while 25% is wasted.

Why power factor matters

A low power factor can cause:

• Higher bills: Wasted energy means you pay more for electricity.
• Appliance wear and tear: Appliances may run harder and wear out faster.
• Power problems: Too much wasted energy can cause voltage drops and trip breakers.

What causes low power factor?

Here are some common reasons:

• Harmonics: Devices like LED lights and phone chargers use electricity in short bursts, which can mess with your power factor.
• Motors and fans: Refrigerators and air conditioners use motors. These motors need extra energy to work, which lowers your power factor.
• Old or broken equipment: Old appliances may use energy poorly, but fixing or replacing them can help.

How to fix power factor with capacitors

Capacitors are small devices that help balance your home’s electricity use.

Types of capacitors

• Fixed capacitors: Always on and good for steady energy use.
• Switched capacitors: Turn on and off as needed. Great for homes with changing energy needs.

How capacitors help

Capacitors give back some of the energy that motors take, which helps your system use electricity better and run cooler.
 

What are capacitor banks and how do they work?

A capacitor bank is a group of capacitors working together. They help homes with naturally higher energy use, like ones with EV chargers. They balance energy use across your home, helping lower strain on wires and breakers.

Benefits 

• Save energy and money
• Help appliances last longer
• Improve power quality

Common problems and easy fixes

Power up your savings with Direct Energy

Improving your power factor helps you save energy and money. And with Direct Energy, you can choose a plan that fits your home and budget. Check out our energy plans and start saving today.