Power Factor can be improved by installing Capacitors at 
the end of consumer, why it is required, in order to 
fulfill the loss during transmission of  power to the end 
of consumer, henceforth if consumer installs additional 
capacitors for making this loss, penalty for PF below .95 
can be avoided & for PF above .95 to unity  , extra rebate 
on monthly bills can be availed. Henceforth It is always 
beneficial to achieve PF up to Unity.

In order to calculate the KVAR of capacitors to be 
installed, it is required to know the details of consumer 
regarding load, voltage level, type of load, switching 
operations of load so as to finalize the capacity required 
for achieving the same.

POWER FACTOR = REAL POWER / REACTIVE POWER.KWH/KVRH.
FOR INCREASING POWER FACTOR PROVIDE CAPACITOR BANK AT 
CONSUMER'S END.