Understanding Substations: Key Components of Power Distribution

September 11, 2025
Image of a pad-mount transformer mounted outside of a facility.

At J&P Electrical, we provide a wide range of electrical products and services—including new surplus, used, and refurbished heavy-industrial electrical components. Substations and power distribution equipment are among the critical systems we work with every day, helping facilities maintain reliable, efficient operations.

What Are Substations?

In industrial settings, a substation is a collection of devices working together to convert main distribution power into usable power for a facility. These systems often include transformers, lightning arrestors, capacitor banks, voltage regulators, switches, and fuses. Together, these components ensure consistent, high-quality power while protecting against outages.

Substations are commonly seen fenced near power lines or positioned at manufacturing facilities where large amounts of power are required.

What Are Unit Substations?

A unit substation takes incoming utility service and converts it to match a facility’s operating needs. This setup integrates three sections into one physical unit:

  • Medium-voltage section – Includes switches, fused switches, or breakers (typically 4kV–20kV) to protect and distribute power.
  • Transformer section – Reduces the medium voltage to a lower voltage, with primary/secondary connections, monitoring equipment, and sometimes cooling fans.
  • Low-voltage section – Contains a main breaker and distribution breakers, delivering power directly to plant equipment or breaker panels. Common voltages here are 480V in modern facilities and 600V in older plants.

Alternatives: Pad-Mount Transformers

For smaller or mid-sized facilities, an alternative to a unit substation is a pad-mount transformer. These are utility-owned and maintained, typically mounted outside the facility. They provide the necessary voltage directly, while the facility is responsible for the cables leading into its low-voltage distribution gear.

The distribution gear functions similarly to the low-voltage section of a unit substation, housing the main utility protection and distributing power to machines and panels through breakers or disconnects.

Choosing Between a Unit Substation and Pad-Mount Transformer

The right choice depends on a facility’s requirements, future growth plans, and available resources. Both systems offer distinct advantages:

Unit Substation Advantages:

  • Greater facility control over operation.
  • Power sizing is determined by the substation, not utility limits.
  • High-voltage distribution allows efficient power delivery over smaller cables.

Pad-Mount Transformer Advantages:

  • Utility handles transformer costs and maintenance.
  • No need for medium-voltage equipment, training, or upkeep.
  • Lower equipment costs with smaller service sizes.
  • Reduced electrical footprint without medium-voltage gear.

A Critical Component of Power Distribution

Whether using a unit substation or a pad-mount transformer, both systems are essential for ensuring safe and efficient electrical distribution. Each option has its place, depending on the facility’s size, complexity, and needs. At J&P Electrical, we support businesses by providing the products, expertise, and solutions needed to keep these systems operating at peak performance.

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J&P Electrical is a full-service electrical supply company. At J&P, we source contractors, end-users, and supply houses with new surplus, quality reconditioned, and obsolete electrical equipment. We also purchase a wide range of heavy industrial electrical equipment such as bus plugs, bus duct, transformers, circuit breakers, fuses, and switchboards. Call us at 877-844-5514 for assistance. 

Written by the Digital Marketing Team at Creative Programs & Systems: https://www.cpsmi.com/.

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