What is kVA? A Complete Guide for Business Energy Users

When managing business energy bills, most companies focus on unit rates per kWh or switching suppliers. But one of the most overlooked, and misunderstood factors impacting your electricity costs is kVA (Kilo Volt Amperes).

Understanding what kVA means, how it’s applied to your business, and how it appears on your bills can help you avoid unnecessary charges, improve efficiency, and even unlock significant savings. In this guide, we break down what kVA is, why it matters, and how Bright Edge can help your business optimise it.

What is kVA?

kVA (Kilo Volt Amperes) is a unit of apparent power. Unlike kW (kilowatts), which measures the actual usable power that runs your machinery, lighting, and equipment, kVA measures the total load your electrical system draws from the grid. This includes both useful power (kW) and the power lost due to inefficiencies, known as reactive power.

In simple terms, kVA represents the total capacity your business requires from the electricity network to operate. It ensures the grid has enough headroom reserved for your business at any given time.

kW vs kVA: Understanding the Power Factor

The difference between kW and kVA comes down to a concept known as the power factor. This is a measure of how effectively your business converts electrical current into useful work, ranging between 0 and 1.

A power factor of 1 indicates a perfectly efficient system, where all the power drawn is used effectively. However, most businesses have a power factor below 1 due to inefficiencies, meaning a portion of the energy drawn is lost as reactive power.

For example, if your business consumes 100 kW of actual power and has a power factor of 0.8, your apparent power demand would be 125 kVA.

Formula: 100 kW / 0.8 = 125 kVA

This distinction is vital because suppliers reserve and charge you for kVA capacity, not just the kW you consume.

What is kVA Capacity?

Your kVA capacity is the maximum load your site can draw from the grid at any given moment, typically measured in half-hourly intervals. This capacity is agreed upon with the Distribution Network Operator (DNO) when your site is connected.

Exceeding your kVA capacity can result in expensive excess capacity charges. On the other hand, having a kVA capacity set too high means you're paying for reserved energy you don’t actually need. Your kVA allowance is usually listed on your energy bill and should be reviewed periodically to ensure it aligns with your business needs.

Why kVA Matters for Your Business

Properly managing your kVA is essential for multiple reasons. First, it ensures you’re not paying penalties for exceeding your agreed capacity. Second, it prevents you from overpaying for capacity you’re not using. Efficient kVA management also protects your infrastructure from overloading, ensuring the safety of your electrical systems.

Moreover, understanding and optimising your kVA capacity supports accurate budgeting and forecasting, giving you greater control over your energy costs and reducing the risk of sudden, unpredictable charges.

The Risks of Incorrect kVA Settings

If your kVA capacity is set too low, your business risks breaching its limit, leading to expensive excess capacity charges. Over time, this can accumulate into significant, avoidable costs. Additionally, drawing more power than your system is rated for can put a strain on your electrical infrastructure, leading to potential safety hazards and equipment damage.

Conversely, if your kVA capacity is set too high, you’ll be paying for capacity you never use. Many businesses end up overpaying simply because their kVA capacity was never reviewed after operational changes, equipment upgrades, or business downscaling.

When Should You Get a kVA Review?

A kVA review is recommended if your business has undergone any of the following changes:

• Installation of new high-consumption machinery or equipment

• Downsizing or significant operational changes

• Relocation to a new premises with a different power demand

• Noticeable changes in usage patterns over time

Regular reviews ensure your capacity remains optimised and aligned with your current operational needs.

Adjusting Your kVA Capacity

Adjusting your kVA requires liaising with your Distribution Network Operator (DNO). Bright Edge simplifies this process by:

• Conducting a full review of your existing capacity and usage

• Handling applications to increase or decrease capacity with the DNO

• Ensuring your business avoids excess charges while optimising your energy spend

Through careful assessment and adjustment, we help you maintain the right balance between capacity and cost.

Converting kW to kVA and Vice Versa

Understanding how to convert between kW and kVA is crucial for accurate equipment sizing and energy planning. The formulas are:

• kW to kVA: kW / power factor = kVA

• kVA to kW: kVA x power factor = kW

For example, a site consuming 200 kW with a power factor of 0.85 would have an apparent power of 235.29 kVA. Getting these figures right is essential for safe and efficient electrical operations.

Get a Free kVA Review with Bright Edge

At Bright Edge, we offer a free kVA capacity review to ensure your business isn’t overpaying on its energy bills. Our experts will assess your current usage, handle the technicalities with the DNO, and adjust your capacity to match your real-world needs.

Optimising your kVA is a simple, often overlooked way to reduce energy costs. With Bright Edge, you’ll get expert support, hassle-free management, and significant savings.

Contact us today to schedule your no-obligation kVA review and start cutting unnecessary energy costs.

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