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What Is Power Factor Correction?

Power Factor Correction is the process of reducing the difference between Real Power and Apparent Power. This is known as the Power Factor.

Apparent Power refers to the total electricity delivered to your system. It is calculated using Kilovolt-amperes (kVA).

Real Power refers to the electricity that is actually used to power your equipment. It is calculated using kilowatts (kW).

No electrical system is 100% efficient, meaning there is always a difference between the Apparent Power delivered to your system and the Real Power that is actually used.

In a perfect scenario, your Power Factor would be 1.0, meaning all the electricity delivered to your system is used to power your equipment. Power Factor Correction Equipment can bring that ratio as close to 1.0 as possible.

Power Factor and Peak Demand: Why Power Factor Correction Matters

During each billing cycle, there are standard periods and peak periods. During peak periods, many power suppliers charge you a peak demand tariff.

Consider the commercial peak period of 7 am-5 pm (10 hours). To calculate the peak demand tariff, your supplier will measure your highest 15-30 minutes of usage during this time. They will then charge you at that maximum rate for the entire 10 hours.

In the past, power suppliers calculated peak demand tariffs using kilowatts, or Real Power. However, many suppliers are now calculating this charge using Kilovolt-amperes, or Apparent Power.

If you have an inefficient Power Factor, this will make your already inflated peak demand charge more expensive. Not only will you be paying a higher rate, but you will be paying a higher rate for electricity you don’t even use.

This is why Power Factor Correction is so important for your property.

Power Factor Correction Equipment Will Pay for Itself in as Little as 1.5 Years!

The change from kW demand charges to kVA demand charges is being adopted nationwide. In some cases, suppliers will also charge you an extra surcharge if your property does not meet a minimum Power Factor.

By installing Power Factor Correction Equipment, you can reduce your electricity bills, lower your peak demand charges, and avoid surcharges. By reducing the demand on your system, you also protect your equipment and avoid unnecessary and costly upgrades.

Investing in Power Factor Correction Equipment isn’t just a wise move. It’s a purchase that will pay for itself in the short to medium term.

Sinexcel SVG: Premium Power Factor Correction Equipment

ALCHIMIE Electrical offers The Sinexcel 50, 100 & 200kVAr Static Var Generator in Wall Mounted Solutions and also with Wall Mounted Cabinets up to 5000kVAr with Standard Flexi or 600KVAr with Large Flexi. This Power Factor Correction Equipment offers premium performance in modern electrical environments.

The Sinexcel SVG can be seamlessly integrated into your switch room and is available in Rack-Mount and Wall-Mount options.

Choose the Sinexcel SVG from ALCHIMIE Electrical for:

  • A constant Power Factor of 0.99
  • Savings of up to 30% for the majority of installations
  • A capacitor bank-free system – meaning no ongoing maintenance costs
  • A solution that works alongside capacitor bank equipment for enhanced performance
  • A system that corrects leading and lagging loads
  • Equipment that can operate at low voltages
  • Dynamic instantaneous step-less compensation
  • And much more!

How Do I Know If I Need Power Factor Correction Equipment?

So why should you choose ALCHIMIE Electrical when searching for commercial electricians for your Melbourne facility?

Find out how much unused electricity you are paying for. Contact ALCHIMIE Electrical for independent advice and information about your Power Factor ratio. As Master Electricians, we serve commercial, industrial, and residential properties in Melbourne.

Optimise your energy efficiency, improve your Power Factor, and permanently reduce your electricity bills. Request a consultation online now or call us on 1300 735 822.


SVG does not use AC capacitor banks so it does not have the reliability issues & ongoing costs associated with these.


At just 48kg, the 100KVAr Sinexcel SVG wall-mounted unit is the most compact power factor correction solution in the world.


By balancing the load across all three phases, the SVG reduces the peak current which in turn reduces the peak demand tariff (electricity bills) and the load on the switchboard.


The SVG provides compensation instantaneously in real-time to each phase individually with no possibility of over-compensation or under-compensation.