The kilowatt killer: The use of capacitors in real estate

The first capacitor was developed in 1745 by Ewald Georg von Kleist, in Germany. Shortly thereafter, Dutch physicist Pieter van Musschenbroek invented a similar capacitor, which was named the Leyden jar, after the University of Leiden where he worked. Benjamin Franklin later popularized the concept during his electricity studies and coined the word battery. (Franklin also coined the electrical terms: charge, conductor, plus, minus, positively, negatively, armature, and condenser, which was the former name for a capacitor.) Great. So, what does this have to do with real estate? And how can capacitors help your business? Simply put, modern capacitors can be used in businesses and homes to reduce the cost of electricity. It is most effective when dealing with inductive loads, which are, "any device that has coils of wire in it's make up." This includes HVAC systems, hydraulics, pumps, compressors, motors of all types, solenoids, generators, and refrigeration systems. The primary use of capacitors is to store electricity and release it when called for. Electricity moves in waves and is a series of spikes and surges. It travels through the wires this way and much of its efficiency is lost through heat transfer and other factors. A capacitor has the ability to store this electricity and then release it in a smooth straight-line fashion, which is much more efficient and beneficial to the componentry it is supplied to. A capacitor has the ability to reduce demand by being available for inductive load demands, thereby minimizing demand at the meter. So the capacitor simply captures the electricity and releases when called upon. A capacitor's even incoming power will act as a buffer between the inductive load in a facility and the breaker panel, thereby reducing "motor lag." Motor lag is where the most electricity is consumed, which occurs during startup. The capacitor provides a boost of power at this time which promulgates a reduction in demand. Moreover, this mitigates wear and tear on the motors and other inductive equipment, enhancing life expectancy as well as lowering maintenance costs. A collateral benefit to a capacitor is that it will act as a surge protector throughout the entire system it is tied into, thereby eliminating the need for local surge protectors for computers, and other office equipment. If you are in an area that is prone to frequent outages, you may know the havoc it imparts to computers, printers and other such devices. Installation of a capacitor is a straight forward process and can be installed by a competent electrician in conjunction with technical support from the manufacturer. The capacitor looks much like a small breaker box and is tied in after the meter. It should not be confused with "net metering" for there is no back flow to the utility. Once the device is connected, it requires no maintenance. Commercial capacitors for applications over 400 amps are usually hard wired, while there are capacitors for residential and small business applications that can be simply plugged into a standard receptacle near the home or business breaker panel. Just turn it on and you're saving money. Payback is quick, depending on application. One well-known capacitor manufacturer guarantees a minimum of 8% savings with a money-back guarantee. Most applications experience a 12-20% savings. So paybacks in smaller applications can take one to two years and longer for larger commercial applications. Nevertheless, we are not talking long payback periods. Now is the time for building owners should embrace this technology. The U.S. Dept. of Energy has calculated that 25% of billable electricity used in homes and business is nonproductive and unusable. Power factor correction, which is the by-product of a capacitor is both simple and justifiable and travels directly down to the bottom line. We installed capacitors at our LEED certified property, www.motorparkwayplaza.com, last year and savings have been ranging 20-30% over the previous year's costs. If you really want to know more about how a capacitor works, watch this YouTube video: http://www.youtube.com/watch?v=ZYH9dGl4gUE Gary Joel Schacker, SIOR, is a principal of United Realty, Jericho, N.Y.