If you own a large building, you should consider correcting poor power factor for either or both of these reasons: • To reduce the possibility of additional power factor charges in event that Laurens Electric starts billing for PF corrections and • To restore the (KVA) capacity of overloaded feeders within the building or building complex. There are several methods of correcting lower power factor. Commonly used are:capacity. Capacitor Banks. The most practical and economical power factor correction device is the capacitor. It improves the power factor because the effects of capacitance are exactly opposite those of inductance. The var of KVAR rating of a capacitor shows how much reactive power the capacitor will supply. Since this kind of reactive power cancels out the reactive power caused by inductance, each kilovar of capacitance decreases the net reactive power demand by the same amount. A 15 KVAR capacitor, for example, will cancel out 15 KVA of inductive reactive power. Capacitors can be installed at any point in the electrical system and will improve the power factor between the point of application and the power source. However, the power factor between the load and the capacitor will remain unchanged. Capacitors are usually added at each piece of offending equipment, ahead of groups of motors (ahead of motor control centers or distribution panels) or at main services.