Back in the days when power factor correction was an art we often used the following method.
First, the power companies historically penalised you if your consumption of VARHrs in a month exceeded a percentage of the KWHrs in the same period. The percentage usually worked out to 90% PF.
We would calculate the number of VARs required to raise the PF to 90%.
Here's where the art came in. We would then consider the system loads and their characteristics. Does the plant operate 5 days a week or 7 days a week? Does it run 1, 2, or 3 shifts?
How many VARs will it take, if they are connected for 24 Hrs. a day, and will this be excessive for the system?
We often were able to justify adding capacitors that were permanently connected.
If we could not justify adding a fixed capacitor bank, we would then start looking at creative switching.
I did some work in sawmills. The typical mill had several large motors, 75Hp. to 300 Hp. and scores of smaller motors.
We would first calculate the correction needed for the largest motors and see if correcting the largest motors to 100% would bring the overall average up to 90%.
The next step would be to use a large motor to close a contactor on a bank of capacitors of the approximate same rating as the correction on the motor. The normal startup sequences would usually result in enough small motors being on-line as each large motor started that the power factor never went dangerously leading.
Although the VARHr meters normal were fitted with a ratchet device to prevent them from crediting us with leading VARHrs, during the off hours, we would benefit from the difference between 90% PF. and 100% PF.
There was a significant cost advantage to using a few large capacitor banks rather than small capacitors at each individual small motor, both in the cost per VAR and the labour to install.
We had a few opther tricks as well, sometimes we would push a large transformer up to 90% leading PF. to compensate for other loads.
If we sometimes went leading in the small hours of the morning, the utilities didn't seem to mind. At that time, the residential loads would be predominantly motors, freezers, refrigerators, furnace fans, and the distribution system would benefit from a few extra VARs.
respectfully