Which strategy reduces electricity charges under a power factor tariff system for a manufacturing plant with predominantly inductive loads?

• ASwitching to higher voltage transformers without changing load characteristics
• BInstalling capacitors to improve the power factor of inductive loads
• COperating all equipment at full load constantly
• DIncreasing lighting hours during low demand periods

Answer & step-by-step solution

Correct answer: B. Installing capacitors to improve the power factor of inductive loads

Quick explanation

Shunt capacitors supply leading reactive power locally, offset the lagging VAr of inductive loads, raise power factor and cut kVA-based tariff penalties.

Q_c = P (tan φ₁ − tan φ₂)