Can a power factor correction device reduce my bill?

SRP has recently received inquiries from homeowners who purchased power factor correction devices (also known as kVAR devices) that did not provide the energy bill-reductions claimed by the manufacturer. While SRP has not physically tested these products, we can help you understand the fine print associated with them and why the federal government thinks they may not be a good match for SRP residential customers.

The "Do Power Factor Correction Devices (kVAR) Really Save Money?" article published by the U.S. Environmental Protection Agency states that the agency has not seen data that proves these types of products for residential use accomplish what they claim. Power factor correction devices generally do not improve energy efficiency (meaning they won't reduce your energy bill). ENERGY STAR® does not qualify power factor correction devices nor are the devices eligible for a federal tax credit.

Power factor correction devices are designed to reduce the amount of reactive power supplied by the utility and required by certain devices such as motors. However, the important thing to understand is that SRP does not charge residential customers for reactive-power use. This means that any reduction in reactive-power use will not directly result in lowering a residential user's utility bill.

If you are interested in saving energy, please remember that you have many options that will actually save you money. Visit savewithsrp.com for rebates, discounts and energy-saving ideas.

Please note that this advice is for residential customers only. If you operate a commercial or industrial business, you could see power factor charges on your bill.

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