Most of the commercial and Industrial installations has large electrical loads.
Most of the commercial and Industrial installations has large electrical loads and many of them are severely inductive in nature, such as motors, large machines, air conditioners, drivers etc. Which results in a lagging power factor. This means loss and wastage of energy and heavy penalties by electricity boards. In case of fixed loads this can be taken care by manual switching of capacitors.
However in case of rapidly varying and scattered loads it becomes difficult to maintain a high power factor by manually switching on/off the capacitors in proportion to variation of load within an installation. This drawback is overcome by using an APFC panel (Automatic Power Factor Correction Panel) which not only maintains a high power factor but also eliminates the eliminates the need for constant manual intervention.
The ratio of Active Power to Apparent Power is called Power Factor (PC) :
Power Factor = Active Power/Apparent Power = KW/KVA