Power factor bill impact calculator

Preliminary estimate

Inputs

Calculation note

Bill impact uses editable CAD/kVA demand-rate arithmetic and does not model utility tariff clauses.

Method

Demand reduction kVA = kW / existing PF - kW / target PF

Monthly savings CAD = demand reduction kVA x demand rate CAD/kVA

Simple payback months = installed cost CAD / monthly savings CAD

MoreLess

Formula variables

  • kW is the real demand used for the bill-impact screen.
  • Existing PF and target PF set the before and after kVA demand values.
  • Demand rate is the editable CAD per kVA billing assumption.
  • Installed cost is used only for simple payback arithmetic.

Assumptions

  • The demand rate is entered by the user in CAD per kVA per billing month.
  • Savings are estimated from reduced billed kVA only; energy charges, minimum bills, ratchets, taxes, and utility rules are not modelled.
  • kVAR uses the same power-factor correction formula as the correction calculator.
  • Utility bill structure, metering interval, measured PF, and equipment-specific review govern real savings.

Examples

Commercial demand example. A 150 kW load improved from 0.78 PF to 0.95 PF reduces estimated demand by about 34.41 kVA. At CAD 14/kVA-month, the monthly impact is about CAD 481.78.

Tariff workflow. Replace the default demand rate with the actual billed structure before treating the output as a budget discussion value.