⚡ Bill Penalty

Power Factor Penalty Calculator

Find the penalty low power factor is adding to your bill — and the capacitor kVAR needed to fix it.

⚡ Low PF is a silent surcharge. Many factories pay 3–8% extra every month purely on power factor — money a capacitor bank recovers in months.
Amount the PF penalty applies to
From your bill (e.g. 0.85)
No-penalty level (often 0.90 or 0.95)
Typical 0.5–1.5% — check your tariff
To estimate the capacitor kVAR you need
📊 Result
⚠️ Monthly PF Penalty
—
PF Shortfall
—
Penalty %
—
Annual Penalty
—
Capacitor Needed
—
💡 Fix it once: a capacitor bank / APFC panel of the kVAR shown corrects your PF to target and stops the penalty. See our Capacitor kVAR calculator and What is Power Factor? guide.
Formula: Penalty % = (Target − Current) × 100 × rate  |  kVAR = kW × (tan(arccos PF₁) − tan(arccos PF₂))

How This Calculator Works

Most tariffs penalise PF below a target by a percentage of the bill for each 0.01 shortfall. We apply your rate and target, then size the correcting capacitor from your load.

Penalty rules differ by state — set the target and rate from your own tariff order for an exact figure.

🔗 Related

🔋 Capacitor kVAR Calculator 📘 What is Power Factor? 🏭 Motor Running Cost ⚡ Electricity Cost

How the Power Factor Penalty Works

Power factor measures how effectively your plant uses the supplied power. Inductive loads — motors, transformers, welding sets — pull the PF down, so the utility delivers more current (kVA) than the useful work (kW). To recover this, DISCOMs apply a penalty below a target PF, and many bill on kVA demand so low PF raises the demand charge too.

Shortfall steps = (Target PF − Current PF) × 100 Penalty % = Shortfall steps × penalty rate per step Monthly Penalty (₹) = Bill × Penalty % ÷ 100 Capacitor kVAR = kW × ( tan(arccos PF_current) − tan(arccos PF_target) )

Worked Example — PF 0.85, target 0.90

Bill ₹1,00,000  |  Current PF 0.85  |  Target 0.90  |  1% per 0.01  |  Load 100 kW

Shortfall = (0.90 − 0.85) × 100 = 5 steps
Penalty = 5 × 1% = 5% → ₹5,000/month (₹60,000/year)
Capacitor = 100 × (tan(arccos 0.85) − tan(arccos 0.90)) ≈ 13.5 kVAR

Frequently Asked Questions

Most DISCOMs penalise PF below a target (0.90 or 0.95) by about 1% of the bill per 0.01 shortfall. At PF 0.85 vs 0.90 target, that is 5 × 1% = 5%. The exact rate and target vary by state tariff order.

Aim for 0.95 or higher, ideally near unity (1.0). Targets are usually 0.90–0.95, with an incentive for higher PF. High PF avoids penalties, cuts kVA demand charges and reduces losses.

Install power factor correction capacitors (a capacitor bank) sized in kVAR to offset inductive load. An APFC panel switches steps automatically to hold PF near target. This calculator estimates the kVAR needed.

kVAR = kW × (tan(arccos PF1) − tan(arccos PF2)). For a 100 kW load from 0.85 to 0.95, about 29 kVAR. Enter your average kW load to get your figure.

Yes. Low PF triggers a surcharge, and on kVA-demand billing it raises demand charges too. Correcting PF with capacitors usually pays back in a few months to a year.

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