Manufacturing plant in Charlotte running power factor of 0.82 and getting hammered by Duke. PF penalty is adding $3,200/month to bill. Plant has lots of motors and welding equipment. What's the most cost-effective fix?
Duke Energy Carolinas power factor penalties
Capacitor banks are usually cheapest solution. For that size penalty, probably looking at 300-400 kVAr installation. Should pay for itself in 12-18 months. Get electrical contractor to do power study first.
Also check if any equipment can be upgraded. New VFDs on motors often improve power factor naturally. Sometimes combination of small capacitor bank plus equipment upgrades is more economical than big capacitor installation.
Power factor correction is one of the best ROI improvements in industrial facilities. Target 0.95 or better. Also verify Duke's PF measurement method - some utilities use different calculation periods that can affect penalty amounts.