Advantages of Power Factor Correction & industrial solar solutions for business

As Eskom announces further power loss and equipment failure, we look to the advantages of power factor correction to save businesses across the country.

BusinessTech reported that the CSIR data that was published shows that South Africa experienced the “equivalent of 27 full days” (650 hours) of load shedding in the 1st half of the year! In fact, last year, business had a whopping 859 “lost hours”, and we are already at 76% of that in 2021!

So how can your business affordably “get out of the dark?

The amendments to the Electricity Regulation Act (section 2) addresses creating an electricity supply that is “stable” for SA, but this will take time and self-generation, i.e. solar can be costly for industry.

Power Factor Correction & Solar Installation

The new rules allow firms to “get off Eskom’s grid”, but that does not bring immediate relief to businesses across South Africa. With more frequent power interruptions, the fact that the grid is under pressure is glaringly obvious, so where does this leave you?

Industrial solar installations can be enormously expensive and take years to give you a clear ROI. With the current economic downturn, recent looting, and continuous Covid-19 lockdown “stop/start,” who can afford a large solar installation?

One of the advantages of power factor correction is that if your plant has a poor power factor, installing the right PFC solution in conjunction with a solar system means you can invest in a smaller industrial solar solution with a shorter ROI.

With the war on Eskom privatisation, as reported by the Sunday Times, Deputy President David Mabuza stated, “there is no intention by the government of President Cyril Ramaphosa to privatise the generation of energy.”

Looking at the current conversation and new rules, the time for businesses to make smart power choices is now!

How can power factor benefit your business

In these trying times, we understand finances are tight, and operating expenses have been cut. Implementing PFC solutions that guarantee immediate savings by improving a bad power factor means your business can invest with industrial solar installers.

Eric Solot of Alpha Power Solutions has worked with installers of solar power systems with a number of clients, and he confirms, “you can make your solar system smaller if you have a poor power factor!”

If your plant has a poor PF, you need more solar panels and inverters to cater for your electrical power needs, and this often results in businesses not being able to afford the larger installations required. Partnering with our PFC experts means you can have the best of both worlds.

By requiring a smaller solar system, you reduce your solar investment and get an even better ROI. Eric stated that when you “install a smaller solar system” while taking advantage of PFC to “reduce your total electrical power consumption”, that this makes the “whole solar project more viable.”

Alpha Power Solutions provide the numbers and show you how much you can save with a quick and easy calculation. These savings can then directly contribute to your smaller industrial solar installation, so it is a win-win situation!

Re-investment into solar solutions with your PFC savings

In addition to these clever electricity savings and guaranteed ROI, the re-investment into solar puts you in charge of your business success and profitability.

BusinessTech reported that banks are already looking at offering “financing to sectional title schemes and estates for this type of “green” improvement”.

It stands to reason with the Sandton “feedback into the grid” programme and the community housing schemes “green light” that businesses who are smart with their energy consumption now will reap large rewards in the future.

Who wouldn’t want to put money back in their business instead of paying for non-delivery of a service?

Your business can benefit from the key advantages of power factor correction. In turn, these savings and efficiencies will “keep the lights on” for a little longer.

Wouldn’t it be nice to scoff at the Eskom Tweets “the high electricity usage is leading to the overloading of networks, resulting in equipment failure and power loss? Customers are urged to manage the amount of electricity used in order to reduce faults caused by overloading.”

Give your business a much-needed boost in overall energy management

Run your business efficiently at an operational level. Invest in Power Factor Correction and chat to us about our solar system partners and how we are actively helping businesses in SA.

Here are the facts:

  1. Through a power factor intervention, the reduction in your electricity cost can be anywhere from 10% and 20%.
  2. A PFC intervention frees up capacity, allowing customers to add more equipment without overloading the electrical supply.
  3. With a more efficient power system, your equipment and operations will run better and more effectively.
  4. The immediate savings can be invested into a smaller industrial solar solution making you less reliant on Eskom.

Make the right decision for your business.

An investment in power factor correction makes business sense because it reduces your monthly electricity bill and significantly improves your bottom line.

As your business grows and adds more equipment, you want to have a consistent electricity supply. You need to have a good power factor so that you don’t reach the limit of the electrical supply, which results in overloading and causes continuous faults and tripping.

Who would benefit the most from PFC? There are three criteria we look at for who could benefit the most from a power factor intervention

  1. Customers with many electrical motors on-site which draw large amounts of power
  2. Customers who are charged for maximum demand on their monthly electrical bill
  3. Customers with a high monthly electrical bill of over R30 000 a month

Besides customers asking us about the advantages of power factor correction, we are also asked how much a PFC intervention will cost. It is not a simple answer as there are many factors to be considered.

However, by using our quick and easy online calculator, you will get an indication of how much your business would need to invest in a PFC solution and how much you could potentially save. These savings can then be re-invested into your business.

Our algorithm has been devised and perfected with a 10% margin for error so that your savings are clearly identified. How it works is simple, go online and provide us with three basic pieces of information,

  1. Confirm who your utility supplier is, i.e. who bills you
  2. What industry your business is in (select from our list)
  3. Add how much, on average, your monthly electricity bill is

From these three answers, we will determine the investment and monthly savings a customer can achieve as well as the total net benefit over 10 years.

Why 10 years? This is the minimum life expectancy of power factor correction. A profitable long-term investment.

Get your power factor correction calculation results and ask us how we can work with you for a sustainable business future (unlike Eskom).

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