Decoding Energy Efficiency: How an Electrical Audit Saves You Money (Beyond LED Lights)
- Molly Brady
- Nov 6
- 2 min read
In New Zealand, where electricity prices are a significant operating expense, achieving commercial electricity cost reduction NZ requires looking beyond basic efficiency measures. For businesses with large motors, heavy machinery, or extensive lighting systems, the biggest savings lie in tackling an invisible issue: Poor Power Factor.
A comprehensive electrical energy audit NZ by Capita Electrical targets this non-productive power consumption, turning technical losses into tangible savings for your business.

The NZ Power Factor Penalty
New Zealand lines companies and electricity retailers often charge large commercial and industrial users based on both Active Power (kW) and Apparent Power (kVA).
What is Power Factor? It’s a measure of how efficiently your equipment converts the total power supplied (kVA) into useful work (kW). Inductive loads (motors, compressors, fluorescent lighting) cause the power factor to drop.
The Penalty: If your Power Factor falls below a contractual level (typically 0.9 or 0.95), you are charged extra fees—effectively a penalty for drawing 'inefficient' power from the network.
The Solution: Power Factor Correction Benefits New Zealand
Power Factor Correction (PFC) equipment uses capacitor banks to supply the necessary 'reactive power' locally, rather than drawing it from the network.
The installation of a PFC unit, guided by our audit, provides clear power factor correction benefits New Zealand:
Immediate Bill Reduction: Eliminates or significantly reduces the Power Factor penalty charges from your retailer.
Increased System Capacity: Reduces the current flowing through your internal wiring, switchgear, and transformers, freeing up capacity for future expansion (like adding machinery or EV chargers).
Improved Voltage Stability: Better voltage regulation at the end-user equipment, increasing the lifespan of sensitive machinery.
Advanced Diagnostics: The Comprehensive Electrical Energy Audit NZ
Our energy audit is the necessary first step to designing an effective PFC solution. It includes:
Load Profiling: We install power quality analysers on your main supply for a minimum of seven days to measure your true energy consumption profile, including peak demand and the precise Power Factor ratio.
Harmonic Analysis: Identifying harmonic distortion caused by modern electronics (VSDs, LED drivers) which can impact PFC effectiveness and system health.
Thermal Imaging: Locating 'hot spots' in switchboards and connections—a clear sign of resistance, inefficiency, and fire risk.
Stop Paying for Power You Don't Use
Power Factor Correction is one of the most reliable and fastest-payback investments in commercial electricity cost reduction NZ. Payback periods are commonly achieved within 1–3 years through significant OPEX savings.
Contact Capita Electrical today to book your Comprehensive Electrical Energy Audit and calculate your potential savings from Power Factor Correction.



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