Can I save money by installing power factor correction capacitors in my home?
A. It is highly unlikely. Since most residential homes in the US are billed in KWH, the benefit of installing power factor correction capacitors is minimal, if any. The only possible benefit you could achieve is the reduction of I2R line losses. I2R lines losses are typically achieved by either reducing the resistance of conductors (increasing the size of wires) or reducing the current flowing through it. Either one of these methods will reduce heat generated in the circuit. This directly translates into a reduction of KWH usage. On loads with poor power factor, the reduction of current is achieved by simply placing a capacitor at that load. Keep in mind that even in an industrial environment with loads operating around the clock, these line losses are usually minimal, below 3% for each treated load. In a residential environment, electrical line runs are typically short and electrical loads (ex., refrigerators, AC units, air compressors, etc.) generally have a very good power factor, a
