Why capacitors are used to improve power factor?
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Because capacitor store energy in form of voltage. It give reactive power .so in induction load current lead and voltage lag .so the capacitor charge up the voltage so it will improve the PF
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Because they help in reducing the Reactive Power as Capacitors have the capability of leading so they bring the power factor nearly to 1.
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 Capacitors generate reactive power instead of that drawn from source which is required by inductive loads.so it reduce the reactive current which is drawn from source to be drawn from capacitor.This control in Electric bills cost.
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