Is your power factor draining your profits? 5 signs to watch for

What if you could cut your electricity bills and extend the life of your machinery without even touching a light switch? Many businesses are paying a hidden tax on their energy, and it all comes down to a problem called poor power factor. This is a measure of how efficiently your electrical equipment is using the power it draws. When your power factor is low, you are paying for energy that doesn’t actually do any useful work.

The signs of a poor power factor are often right in front of you, but they can be easy to miss if you don’t know what you’re looking for. Here are five common signs that a poor power factor is costing you money and putting your operations at risk.

Table of contents

    1. High utility bills with unexplained fees

    This is often the most obvious sign. Take a look at a recent electricity bill. Do you see a line item for “reactive power,” “kVAR,” or a “power factor penalty?” If so, you’re being directly fined for your inefficiency.

    Even if you don’t see a specific penalty, a poor power factor can lead to higher overall energy consumption because your electrical system is working harder than it needs to. If your bills seem unusually high, it could be a warning sign.

    2. Equipment overheating or failing prematurely

    Have you noticed certain machines or panels feeling unusually hot to the touch? A poor power factor increases the current flowing through your electrical system, which generates excess heat. This can cause motors, transformers, and cables to overheat.

    The constant heat puts a huge strain on your equipment, leading to a reduced operational lifespan and increasing the risk of an unexpected breakdown.

    3. Unexplained voltage drops

    A poor power factor can cause voltage to drop in your facility, especially when heavy machinery kicks on. These voltage sags can cause motors to run slower, lights to flicker, and sensitive electronics to malfunction.

    While voltage drops can have other causes, if they happen regularly and are unexplained, it’s a strong indicator that a poor power factor is at play, compromising the stability of your power supply.

    4. Diminished machine performance

    Are your machines running slower than they should be? Are you having trouble meeting your production quotas? The effects of a poor power factor can impact the performance of your electric motors.

    When motors are not supplied with the proper voltage and current, they can’t operate at peak efficiency. The result is slower output, reduced torque, and a general decline in performance, which can have a direct impact on your bottom line.

    5. Low energy efficiency scores

    If you use an energy management system or are part of a program that tracks energy efficiency, a consistently low score can be a major red flag.

    Many efficiency metrics are directly tied to how well your facility is using the power it draws from the grid. A low power factor drags these scores down, making it appear as though your entire operation is inefficient, even if some of your machines are performing well.

    The bottom line: it’s time to act

    Ultimately, these five signs point to a single issue: your electrical system is working harder, hotter, and less efficiently than it should. Ignoring them isn’t just a matter of higher bills—it’s a risk to your business’s profitability and the longevity of your valuable assets.

    Don’t let poor power factor drain your profits. Take the first step toward a more efficient operation and start cutting your energy costs today.

    Start saving today

    Whether you want to save on energy or avoid maintenance, we can show you how our smart monitoring solution will benefit your plant. Don’t wait any longer and start saving on time and costs right away.

    Request a demo