Savings in the electrical bill: Reactive energy

What is Reactive Energy?

Reactive power (or reactive energy) is the additional demand for inductive power that is needed by certain equipment to function; such as motors, transformers and lighting.

The electric company measures the reactive energy values, and a penalty is included in the electrical bill if certain values are exceeded.

Why now?

Today, digital meters measure the consumption intrinsically by themselves, which makes it more feasible for the utilities to perform billing for this item.

We have found several cases where consumption decreased up to 15 kW after reactive billing was implemented.

As an example, in a community of neighbors with a contracted power of 3.3 kW at a 230 V single phase supply, with a product TUR (tariff of last resort), which has a measured reactive consumption equivalent to a cosine phi 0.7. Under the current legal framework, the amount payable for this item is € 92.13, which is equivalent to 43% of the total bill, before taxes, VAT, adjustments and rentals are applied.


How can we recognize it?

On the bill, there is a term “reactive power supplement“, which is the monetary amount the power company charges for the generation of this energy.

In neighboring communities, reactive power is generated primarily by lobbyists engines, elevators, and fluorescent lighting.


Can it be removed?

There are two major ways to properly eliminate the generation of reactive power:

  1. Compensate for the energy produced by each building engines and lighting. This solution is technically complex and economically costly because it involves placing capacitors in every engine within the community.
  2. Offset global energy produced by the facility, through a capacitor bank. To run this solution, it is necessary to conduct a historical study of past electricity bills, in order to verify the evolution of reactive energy consumption and to determine the proper battery installation.

The capacitor bank, consisting of several capacitors which are connected to the installation, as required, to compensate the reactive power.



When is it interesting to install a capacitor bank?

  • Before installing a capacitor bank technical and economic study must be conducted to compare the cost of installation with the savings generated and the repayment term.
  • What does INKOO propose?
  • Study of the historical data for 12 months both active energy and reactive energy
  • Sizing of the battery power capacitor
  • Feasibility study for the installation analyzer field visit and networking for possible contamination
  • Final technical report with cost analysis and payback period
  • Battery installation


What does the customer get?

  • Customer gets a good deal and enjoys the advantages of a turnkey project.
  • Significant savings in electricity bills. You’ll stop paying penalty for reactive energy.
  • Higher quality and efficiency in electrical supply: improve power quality and eliminate voltage drops.
  • Free counseling service technicians from INKOO engineering.


All with an investment payback period of less than 15 months.