Skip to Content

Power Factor Correction Finance

You've been quoted for PFC equipment. We already understand what it does, and we'll structure the funding around the savings it delivers.


Start Now

We Understand Reactive Power

If you've had a power factor correction survey, you already know the numbers. Your electricity bills are carrying reactive power charges, sometimes hundreds of pounds per month, and PFC equipment eliminates or significantly reduces them.

We don't need your installer to explain what power factor is. We already understand the relationship between kVA demand, reactive power charges, and the correction equipment that removes them. 

That means less back-and-forth, faster decisions, and a funding structure that reflects the real commercial case.

Your Installer Has Done the WorkFinance Structured Around the SavingsPart of a Wider Energy Strategy?What We Need From YouReady to get your PFC project funded?

Your Installer Has Done the Work

Your PFC specialist has surveyed your site, identified the kVAr requirement, and provided a proposal. That's exactly where we come in. 

We work with the technical information your installer has already prepared, the site survey, the equipment specification, and the projected savings.

We don't compete with your installer. We don't recommend alternative equipment. We take what's been specified and find the right funding structure to get it installed.

Finance Structured Around the Savings

Power factor correction is one of the clearest commercial cases in energy efficiency. The savings are measurable from month one, they appear directly on your electricity bill as a reduction in reactive power charges. 

That makes it straightforward to structure finance where the repayments sit comfortably within the savings.In many cases, the project is cash-positive from the first month. 

We help lenders see that clearly.

Part of a Wider Energy Strategy?

Some businesses start with PFC because the payback is immediate and obvious. Others are already thinking about LED lighting, voltage optimisation, or solar as part of a wider programme. 

If that's you, we can look at the whole picture now rather than you going through the funding process multiple times. One conversation, one facility.

But if PFC is the only project on your list right now, that's fine too. It stands on its own commercially.

What We Need From You

A copy of the installer's proposal or quotation

A recent electricity bill showing reactive power charges (or kVA demand)

Basic information about your business (limited company, trading history)

That's usually enough for us to start exploring funding options. 

No lengthy application forms at this stage.

Ready to get your PFC project funded?

Your installer has done the technical work. 

Let's get it over the line.

Get in Touch →

Frequently asked questions


Reactive power charges appear on your electricity bill when your site draws more power than it actually uses productively. This happens when equipment like motors, compressors, and transformers create a lag between voltage and current. 

Your energy supplier charges you for this wasted capacity, often listed as "reactive power charges" or "kVA charges" on your bill.

In most commercial installations, power factor correction equipment pays for itself within 12 to 24 months through reduced reactive power charges. Some sites with particularly high charges see payback in under 12 months. 

Your installer's proposal should include a projected payback period based on your actual bill data.

Yes, in many cases. Because the savings are immediate and clearly evidenced on your electricity bills, regardless lenders can often provide unsecured finance for PFC projects. 

The strength of the commercial case, measurable savings from month one supports this approach.

Not necessarily. If you're responsible for the electricity supply and the reactive power charges appear on your bill, PFC can usually be installed regardless of whether you own or lease the premises. 

Your installer should confirm whether any landlord consent is needed for the physical installation.

No. Power factor correction equipment operates passively alongside your existing electrical system. It doesn't change how your machinery works or interrupt your supply. Installation typically takes less than a day and can often be done without shutting down operations.

We typically work with projects from around £5,000 upwards. There's no practical upper limit, larger industrial sites with significant reactive power charges often have PFC projects in the £50,000 to £100,000+ range when bundled in with other initiatives.

Power factor correction equipment may qualify for Enhanced Capital Allowances under the Energy Technology List, allowing you to claim 100% first-year tax relief. Your accountant can confirm eligibility based on the specific equipment specified. 

This further improves the overall financial case.

Some suppliers bundle reactive power charges into a single line or use different terminology (excess capacity charges, kVA surcharges). If your installer has identified a power factor issue through a site survey, the charges are there, they may just need extracting from the bill detail. 

We can help identify them if needed.

Yes. If you're also considering LED lighting, voltage optimisation, or other improvements, these can often be structured within a single finance facility alongside PFC. 

This simplifies the process and can strengthen the overall commercial case presented to lenders.

For straightforward PFC projects with clear savings evidence, we can typically have funding options within 5 to 10 working days. 

The clarity of the commercial case, reactive charges in, savings out, makes PFC one of the faster project types to get approved.

We're equipment-agnostic. We work with whatever your installer has specified, whether that's ABB, Schneider, Enerdoor, or any other manufacturer. 

Our role is to fund the project, not to influence the technical specification.

Reactive power charges are an industry-standard mechanism across all UK energy suppliers. While individual tariff rates may vary, the underlying charge for poor power factor remains regardless of supplier. 

PFC equipment continues to deliver savings for its full operational life, typically 15 to 20 years.

Discuss a Power Factor Correction Project

If your project has technical approval but is struggling to secure financial approval, Locataire Capital can help you explore possible funding structures for energy efficiency and transition projects.

Discuss Your Project