Power Factor Correction | What is Power Factor Correction?
power factor correction is not primarily about reducing the power usage for the consumer. It's primary use is to keep the power transmission and distribution networks efficient. When a power line has a low power factor, the amount of real power transmitted is reduced but the losses are increased because it is the real power plus the reactive power that are causing the i^2c losses.
If the customers load is strongly inductive then it will negatively affect the power factor of the distribution circuit it is connected to and this will compound up throughout the transmission network to the generator. Because of this, the retailer may choose to charge higher rates to discourage customers from running a poor power factor.
If your retailer is charging you strongly for a poor power factor then yes it can be worthwhile including some power factor correction. Otherwise the small efficiency you will gain in induction machine operations will be unlikely to pay for the installation in any reasonable timeframe.
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