Advantages of individual capacitors at the load:

• Complete control; capacitors cannot cause problems on the line during light load conditions

• No need for separate switching; motor always operates with capacitor

• Improved motor performance due to more efficient power use and reduced voltage drops

• Motors and capacitors can be easily relocated together

• Easier to select the right capacitor for the load

• Reduced line losses

• Increased system capacity

Advantages of bank installations at the feeder or substation:

• Lower cost per kVAR

• Total plant power factor improved—reduces or eliminates all forms of kVAR charges

• Automatic switching ensures exact amount of power factor correction, eliminates over-capacitance and resulting overvoltages