SVG power factor correction is an advanced method of reactive power compensation used in modern electrical systems to maintain a power factor close to 1.0 in real time.
Unlike traditional capacitor banks, SVG (Static Var Generator) provides dynamic and precise power factor correction for facilities with non-linear loads such as VFDs, UPS systems, EV chargers, and renewable energy inverters.
SVG power factor correction has become the preferred solution for industries that need to reduce electricity penalties, improve energy efficiency, and comply with IEEE 519 standards.
Poor power factor increases current demand from the utility. Higher current leads to:
Increased cable and transformer losses
Equipment overheating
Higher electricity bills
Utility power factor penalties
SVG power factor correction reduces unnecessary current flow, which directly improves energy efficiency and reduces wasted power inside the electrical system.
Facilities that ignore power factor correction often waste 8–15% more energy than necessary.
SVG continuously monitors the system and injects leading or lagging reactive current within milliseconds.
This real-time response allows SVG power factor correction to:
Stabilize voltage
Maintain PF at 0.99
Eliminate reactive power penalties
Prevent overloading of transformers
Improve overall system efficiency
This is impossible for traditional capacitor bank systems that rely on step switching.
| Feature | Capacitor Bank | SVG Power Factor Correction |
|---|---|---|
| Response time | Slow step switching | Real-time dynamic response |
| Accuracy | Limited | Precise PF correction to 0.99 |
| Harmonic risk | Can amplify harmonics | No harmonic amplification |
| Suitability for VFD loads | Poor | Excellent |
| Maintenance | Frequent | Minimal |
| Lifespan | Short | Long |
This comparison shows why SVG power factor correction is replacing capacitor banks in modern facilities.
Utilities charge penalties when power factor drops below required limits.
SVG power factor correction ensures:
Continuous compliance with utility PF requirements
Elimination of penalty charges
Reduced apparent power demand (kVA)
Lower electricity bills
For many industrial plants, SVG power factor correction pays for itself within 12–24 months.
SVG power factor correction is essential for:
Manufacturing plants with VFD machines
Data centers and server rooms
Hospitals and medical facilities
EV charging stations
Solar and wind power plants
Steel mills and heavy industries
Commercial buildings with UPS systems
These environments generate unstable reactive power that only SVG can correct effectively.

SVG power factor correction helps facilities meet:
IEEE 519 harmonic standards
IEC power quality requirements
Utility power factor regulations
Energy efficiency policies
It is now considered a key device in modern power quality management.
SVG power factor correction is a dynamic reactive power compensation method that keeps PF close to unity in real time.
Because SVG reacts instantly, provides precise correction, and does not create harmonic problems.
Yes. It removes penalties, reduces losses, and lowers kVA demand.
Absolutely. These loads create unstable reactive power that requires dynamic correction.
Most facilities recover the investment within 1–2 years.
SVG power factor correction is no longer just a power quality upgrade. It is a direct method to improve energy efficiency, reduce electricity penalties, and modernize electrical systems for today’s non-linear loads.
For facilities seeking reliable and efficient power factor correction, SVG is the most advanced and effective solution available.
YT Electric provides advanced SVG power factor correction solutions and active harmonic filters designed for industrial and commercial power systems worldwide, helping customers achieve superior power quality and energy efficiency.

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