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Will this work for every company?

A sales rep would say yes, everyone needs this. Buy it as soon as you can.

Real world business and engineering answers are not as sales driven, or as simple. IPA Energy Group knows that this may not be for every organization. Companies with power bills of below $3,000 per month will see savings, but the ROI may be longer than what makes sense to the business. Some companies have already installed the expensive VFDs on several of their motors. There would be savings, but it may not be enough each month to justify spending more money for a minimal savings.

As this only helps with inductive loads (motors and pumps) an organization where the largest portion of the electric bill is for computer equipment and lighting, we may not be cost effective. For large office buildings, AC units are the primary focus for savings each month. The best way to determine if IPA can help a company is to give us a call and send us a warm and cold month power bill.

What is the warranty on the actual hardware that is installed?

IPA Energy Group and the manufacturer provide a standard 5-year warranty, with the option to extend this as needed by working with IPA to determine the length needed for each individual customer. Warranty states that if a box fails (this is rare since there are no internal moving parts) a new replacement box is shipped to the customer and installed at no charge.

How long do these boxes last?

The life span for the boxes is 25 years. There are no internal moving parts and they are sealed to withstand harsh weather conditions. There are rare failures, but the above warranty replaces the [E-box] quickly with no long discussions about what caused the issue.

What is the guarantee on the IPA Solution?

We guarantee that the savings will be within 3-5% of our proposal. This is dependent on the run times that we are provided by the customer for each load that we size. We only focus on the percentage saved as cost of Kwh and the demand of production can change to meet business requirements. We work with our customer to show the savings as workloads and temperatures change throughout the year.

How much does the assessment cost?

There is no cost for the first assessment. Many companies perform a pilot of a small number of electric motors to establish if Power Factor Correction would be a benefit for them. IPA performs several of these pilots each month with the agreement from the company that they would need to implement the pilot solution before we can perform further assessments at no charge. If a follow-up assessment is needed by the company for the entire facility, IPA will need to charge for our expenses for the additional sizing. The amount charged for the additional sizing is credited back to the customer in the final proposal, thus rebated back upon purchase.

Why is this the first time we have heard of this?

Many companies have not been penalized with any power factor penalty on their bills, and other have addressed these penalties by having an electrical contractor install a capacitor bank at the main panel. This will address any power factor penalty but does very little to reduce demand at the load. We work with our manufacturer, who invented the sizing apparatus that allows us to go to each load and determine how to correct the power factor at the motor. In the past, the easy way is at the panel. We do it the recommended way because we have the tools and knowledge to do it the correct way. Our solution addresses the power factor penalty and reduces the demand as well, saving money two ways.

What does a company get after an assessment?

Once we have competed our assessment, IPA compiles a very detailed report that we furnish to the contact at a company. This report contains the following information:

  • A brief description of IPA Energy Group and Power Factor Correction
  • Calculated monthly savings in percentage, KW, dollars and the ROI in months
  • Breakdown of the Solution, Amps Saved, kWh Saved, Monthly Savings and price for each individual
    motor assessed
  • Total price of Power Factor Correction proposal, including price, installation, and taxes
  • Guaranteed savings summary for monthly, annually, 5-year warranty and 25-year life of product
  • IPA Energy Group and Manufacturers guarantee document
  • IPA Energy Group’s standard Terms and conditions
  • Manufacturer’s 5-year warranty document for review with unique proposal customer number

We work to provide as much information as possible to help a customer see the benefits of our solutions. Our proposal is usually followed up with calls and meetings to talk about payment options, proposal findings, warranty questions, any managed services, and timelines for installation.

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