There are multiple terms and definitions which are not common among the public. However; the principles and processes explained in the definition are directly connected by individuals using electricity. One of those less common principles is a power factor problem.  If you are not completely using the electricity for which you are paying, this technical problem is known as a low power factor. Low power can be very detrimental for your household or company’s financial side.

There are multiple types of products and devices being used for power factor correction, and one of them is a capacitor bank. Different organizations widely produce power factor correction capacitors for this purpose. It is said that by using this device, you can increase the power factor of your electrical supply system to 95 %. At this percentage, you can achieve maximum power consumption.

You can not only fix the low power factor by using the capacitor bank, but there are multiple other benefits of using these power factor correction capacitors. The biggest of all advantages which can be achieved by using capacitors is that you can decrease your electricity bills. Further; they can also help you in increasing the capacity of your electrical system. So, if you are running a business or a factory, you can utilize the electrical power in the best way possible. Capacitors also help you in reducing electrical losses from your system.

Now a question that should arise in our mind is how we can connect the capacitor bank so our power factor can be increased. It depends on which type of load you have for your whole system. If you have a continuous and stable load, you can use global compensation principle for improving the power factor. In this principle, the capacitor bank will be connected to the busbars of the main distribution board. The connected capacitor should remain functional if you have a regular and steady load. By following this principle, not only your power factor will be improved, but it will also reduce the penalties included in your tariff due to excessive use of KVs. Your electricity charges are based on power demand by your system. Global compensation system followed by using the capacitor bank reduces this power demand as well. It also relieves the main transformer so excessive load can be accepted if required.

If you have an extensive installation system and the load is variable, then you should be using compensation by sector system for improving power factor. In this system, the capacitor bank is connected to the busbars of every distribution board. It is observed that a major part of your electrical system will have the benefit of following the compensation by sector system. The feeder cables from the main distribution board and the cables on each local distribution board are relived due to the capacitor bank connection with every busbar. Further; it can also reduce the size of the supply cables and therefore; power losses are also reduced.