Power Factor Correction Capacitors are typically added to a system to increase system Power Factor. Some users install switched capacitor banks at the incoming service for utility bill savings only. Since capacitors only improve a system from the capacitor back to the power source, many users will install capacitors at motor loads so they will be switched with the motor. With this method the benefits of lower *(I2R) losses improve their whole system. The addition of variable frequency drives will usually improve the Power Factor.