How to improve power factor ?

Low power factor is generally solved by adding power factor correction capacitors to a facility's electrical distribution system. Power factor correction capacitors supply the necessary reactive portion of power (kVAr) for inductive devices. By supplying its own source of reactive power, a facility frees the utility from having to supply it. This generally results in a reduction in total customer demand and energy charges.

Power factor correction requirements determine the total amount of capacitors required at low voltage buses. These capacitors can be configured as harmonic filters if necessary. The power factor characteristics of plant loads typically are determined from billing information, however, in the case of a new installation, typical load power factors will determine the required compensation.