Power factor correction equipment and energy management systems have nothing to do with each other.
Power factor correction equipment “reclaims and recycles” something called “reactive electricity,” according to the equipment manufacturers. Reactive electricity is a sort of extra current in the power lines that doesn’t provide any energy to your home. Manufacturers of power factor correction equipment state that this equipment can save you up to 30 percent on your energy bill by “reclaiming and recycling” reactive electricity. However, our local utility companies recently stated that consumers are not charged for reactive power and Energy Star officials have said they have not seen the data that confirm the savings, so they have not endorsed this product.
Energy management systems use an energy management computer that “knows” when your utility’s rates for electricity are at their highest and lowest. Rates fluctuate during the day so they’re higher during peaks when demand for energy is at its highest and lower when fewer people are running their air conditioners full blast. The energy management computer, which is installed in your home, controls your thermostat and moves the temperature up or down so you use less electricity when rates are at their highest and more when they’re low. Manufacturers like Advanced Home Systems estimate that you can keep your house as cool as you like during the summer and still save at least 30 percent on your electric bill. Rosie has an energy management system by Advanced Home Systems in his home and has seen a huge reduction in his electric bill.
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