Question

a factory operates at 0.80 power factor lagging and has a monthly demand of 750 kva. the monthly power rate is 8.50 per kva. to improve the power factor, 250 kva capacitors are installed in which there is negligible power loss. the installed cost of equipment is rs. 20,000 and fixed charges are estimated at 10% per year. calculate the annual savings effected by the use of capacitors.

Answer 1

The annual savings effected by the use of capacitors in the factory is $153,000.

Step-by-step explanation:

First, let's calculate the power factor before and after installing the capacitors.

Given that the factory operates at a power factor of 0.80 lagging, we can calculate the apparent power as:

Apparent Power = Monthly Demand = 750 kVA

To find the real power, we can use the formula:

Real Power = Power Factor x Apparent Power

Before installing the capacitors, the real power would be:

Real Power before = 0.80 x 750 kVA = 600 kW

After installing the capacitors, the power factor is improved to unity, meaning it becomes 1.

Now, the real power after installing the capacitors would be:

Real Power after = 1 x 750 kVA = 750 kW

To calculate the annual savings, we need to find the difference in real power before and after installing the capacitors. Since the power factor improves, the real power increases. Therefore, the annual savings can be calculated as:

Annual savings = (Real Power after - Real Power before) x Monthly power rate

Annual savings = (750 kW - 600 kW) x $8.50/kVA x 12 months

Annual savings = 150 kW x 8.5 $/kVA x 12 months

Annual savings = $153,000

Therefore, the annual savings effected by the use of capacitors is $153,000.