What is the main purpose of installing capacitors on a distribution circuit?

The main purpose of installing capacitors on a distribution circuit is to reduce reactive kilovolt-amperes (RKVA) and align kilovolt-amperes (KVA) with kilowatts (KW), thereby improving the power factor. When reactive power is reduced, it allows the electrical system to operate more efficiently, as the real power (KW) is more effectively utilized. A better power factor decreases losses in the system, reducing energy costs and improving the overall capacity of the network. Installing capacitors helps to compensate for the inductive loads in the circuit, which draw reactive power, enabling a more balanced and efficient electrical system. This ultimately leads to improved energy savings and performance in the distribution network.