In a layman’s language, power factor correction may be described as changing the power factor of an electrical system. The power, or what may be called the active power, does not have a lot of output, as it gets wasted with a lot of reactive power that does not do any work. It is possible to cope with such problems by employing utilities such as capacitors which can help raise the power factor Thousands of such corrections can minimize demand charges, and consumers will be able to save on energy costs. This not only increases energy efficiency but also leads to a more controlled and dependable power system which is beneficial to the business and to the environment.