Can use of Capacitor or Power Saver device reduce our Electricity Bill?

There is a misconception about the reduction of electricity bill using capacitor or power saver devices. Many people buy power saver or power factor correction devices to reduce their electricity bill of house. But does it actually works? Most of the people asked a question very much that is can we reduce our electricity bill using capacitors or power factor correction devices. So today we are going to discuss about these doubts and misconception.

The actual true answer is NO, we cannot reduce our electricity bill using capacitors or power factor correction devices. This answer is true for the domestic or household purpose only because in industrial purpose electricity bill can be reduced using capacitors or power factor correction devices.

Let's understand in detail.

How capacitor reduce our electricity bill? The answer is it improves the power factor and compensate the reactive power to reduce the electricity bill.

If you notice your energy meter at your home or your electricity bill receipt, then you will notice you are paying the electricity bill in terms of KWH. In our houses, we have used low tension loads. So the electricity supplier companies do not take any charges from us for the power factor variation. They take a fixed charge which included with our electricity bill that means if our power factor is decreased or increased there is no effect will occur in the electricity bill.

So it is clear that we cannot reduce the electricity bill by improving the power factor that means using capacitors or power factor correction devices electricity bill cannot be reduced.

In the case of industrial purpose, they used high tension loads, so they must maintain the power factor. Because of the electricity supplier company apply a penalty on them for low power factor. So in industrial purpose, the electricity bill can be reduced by improving the power factor by using capacitors or power factor correction devices.

According to the MERC order(case no. 195 of 2017 dated 12 September 2018), KVAH billing system will be applied to all the HT and LT consumers having load above 20 KW from 1st April 2020.

In the KVAH billing system, the variation in power factor will affect the electricity bill.

So after the implementation of KVAH billing system, if you used above 20KW load in your house, you can reduce your electricity bill using capacitor or power factor correction devices.

Read Also:

• Why capacitor is connected in parallel not in series for Power Factor improvement?
• [Explained] Should Neutral Wire be thinner than Phase Wire or Not?
• [Explained] Does Neutral Wire Give Electrical Shock or Not?
• Why we use 220V, 50Hz AC at home instead of DC or other voltage?

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