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Are power factor correction appliances (KVAR units) even legal to lease to house owners under false pretenses?

  • Last Updated:
  • Jul 9th, 2021 5:15 pm
Jul 8, 2021
8 posts

Are power factor correction appliances (KVAR units) even legal to lease to house owners under false pretenses?

My parents were deceived into leasing a smart thermostat + power factor correction unit to lower utility costs few years ago. They have been paying almost 50$ every month to a non existent company that now belongs to another. Term does not end for another 10 years so the only option to end the contract is it buyout which costs almost 6 grand. Doing a quick lookup shows that these exact units cost 350$ combined in amazon.com and other places. Their google review (1/10 ratings) is piled with people who were tricked into signing similar deceitful contracts so we are not alone. I did some more research and found reliable articles and reviews about the power factor scam,

http://www.nlcpr.com/Deceptions1.php?fb ... cJp54jQZ1s

They apparently don't contribute to anything in home settings. I was also told that these appliances most likely are not even CSA/CUL approved so its illegal to lease or sell. Its more convincing because on our enbridge gas bill, only the smart thermostat is listed in other company charges.

Where do i check if these have approval from the government and also what are some good ways to get out of this contract without having to pay 20x times the actual cost of units?
Last edited by DeluxeDeals on Jul 9th, 2021 9:48 pm, edited 1 time in total.
5 replies
Deal Addict
Nov 17, 2012
4952 posts
If this is as scammy as it sounds, I'd have an electrician remove the device and I'd stop paying the bill. Let the company come after you and tell them to pound sand when they do.

The world won't end if you just stop paying the bill.
Feb 5, 2019
208 posts
Learned something new today. Stay the hell away from KVAR salesmen.
Deal Fanatic
User avatar
Jan 16, 2011
7205 posts
GTArenovate wrote: Learned something new today. Stay the hell away from Door to door salesmen.
Fixed that for you. :)
Deal Fanatic
User avatar
Jun 21, 2003
5983 posts
Stoney Creek, ON
Power Factor Correction is a big deal in industrial settings where you have massive inductive loads. In those cases the cost of installing PFC capacitor banks will absolutely pay for itself in the long run. It’s very common to have.

This is the first I’ve ever heard of someone saying they have installed PFC equipment in a home and I would say without a doubt it is a scam. It will never pay for itself in a residential setting.
Deal Addict
Oct 19, 2020
1047 posts
Residential electricity users are not dinged for having a poor power factor, the meters measure wattage.
Hvac advice warning - inaccurate information on forum, vested interests in selling builder's equipment. Selling dealer-only brands without being authorized is a red flag. Report to CRA if offered no tax cash-deal. If it's 2 good to b tru, it is.


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