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Improving the power factor of an industrial load acts to reduce the load current delivered by the electricity utility company, enabling them to reduce the amount of copper used in the supply lines, Transformers, circuit breakers, etc. It also prevents the electricity utility company imposing a penalty charge applied to the factory's energy bill.

The most common method of improving power factor under these circumstances, is by installing a capacitor bank at the supply's point of entry at the factory. It is also possible to install capacitors at individual inductive loads.

Power factor improvement does not apply to residential loads, and any company offering 'power-factor improvement' capacitors for residential loads is a scam.

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12y ago

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