What are the primary reasons for installing capacitors in an electrical system?

The primary reasons for installing capacitors in an electrical system are fundamentally linked to enhancing the system's overall efficiency and performance. Capacitors are utilized to reduce lagging current, which is associated with inductive loads. This is essential because excess lagging current leads to inefficiencies in how electrical energy is used. By incorporating capacitors, the power factor of the electrical system is improved, which indicates that the electrical system is operating more efficiently and there is less wasted energy.

Furthermore, capacitors help to increase voltage levels, which is crucial in maintaining stability and ensuring that electrical devices receive adequate power for optimal operation. With improved voltage and power factor, utility companies may also lower investment costs associated with infrastructure, as the system can handle more load without requiring additional generation resources. Hence, option B accurately captures the multiple benefits provided by capacitors in managing and optimizing electrical systems.