Power Factor Correction Capacitors (PFCs) installed near AC motors
absorb the reactive current of AC motors and in so doing, prevent this current from going
back to the sub-station and thus adding to the current that the plant transformer must
handle. By keeping the reactive current down, overall plant power factor is improved. PFCs
are beneficial in keeping kVAR demand charges down.
PFCs can be used, provided they are placed in front of the starter or variable frequency drive. If
placed between the starter and the motor, the PFCs will destroy the reduced
voltage soft starter or variable frequency drive. Never install Power Factor
Correction Capacitors on the output of a soft starter or variable frequency drive.
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