Agree with Lionel. I've been through this many times, including in a courtroom when I had to argue against a capacitor-seller for deceptive practices. He was selling to churches and other unsophisticated end users, and he used a clamp-on ammeter to make the sale. Bad guy. When they called me to explain why the utility bill was still so high, even though the current had dropped as shown on the ammeter, it turned sort of war-like.
Let's assume that adding the capacitor does not change the operation of the motor at all (when in fact, it will slightly raise the motor terminal voltage due to lowered line losses). If there are energy-saving effects from the slightly-higher voltage, I don't know how to compute them -- seems it would depend on the type of load. If the load were centrifugal (pump), a higher voltage might speed the motor up a tad and cause more work to be done? Anyway, consider in this case that all we're doing with the capacitor is lowering I-squared-R losses in the feeder to the motor:
100 kW load at poor power factor, say 50%, 480/3: Line current = 240A
Improve power factor all the way to 100%: Line current = 120A
350M three-wire (at 0.037Ω per 1000 feet, 100-foot distance) has total 0.0111Ω
Total active power at 50% power factor = 100 kW + 240A^2 * 0.0111Ω = 100.639 kW
Total active power at 100% power factor = 100 kW + 120A^2 * 0.0111Ω = 100.160 kW
So we save almost 75% of the line losses, but just a tad less than 0.5% of the total load.
Assuming 8760 hours/year and USD$0.09 per kWh, our bill goes from $79,343.79 per year to $78,966.14 per year. That’s $377.65 in our pocket, saved.
Now, how much is that 100 kVAR capacitor bank to purchase and install? I haven't priced that kind of stuff in decades, but I'm betting it would be over $5000. If so, that's a 13+ year payback. I wouldn't buy it.
I gave a very-best case above. If the motor runs 12 hours per day instead of 24, that's a 26+ year payback. If the original power factor was better than 50%, there's less to be saved (but smaller capacitors to buy).
It all boils down to economics. If you have a power factor penalty, it can pay quickly. If not, do the math. Energy savings won't be big compared to the cost of installation.
Good on ya,
Goober Dave
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