A factory operates at 0.80 p.f. lagging and has a monthly demand of 750 kVA. The monthly power rate is Php8.50 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 Php20,000 and fixed charges are estimated at 10% per year. Calculate the annual savings effected by the use of capacitors.

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  1. A factory operates at 0.80 p.f. lagging and has a monthly demand of 750 kVA. The monthly power rate is Php8.50 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 Php20,000 and fixed charges are estimated at 10% per year. Calculate the annual savings effected by the use of capacitors.
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