Two main approaches are capable of improving electrical system efficiency: capacitive and inductive power factor correction. In order to reduce the lagging power factor, capacitors are added to inductive loads, which are typically present in the form of motors and transformers. This is quite beneficial in industries that with a lot of inductive loads. However, inductive loads management, which may include reactors follows where excessive capacitive loads are present to ensure the power factor is balanced. Appreciating the unique attributes and application of each of the methods provides plausible reasons for making such decisions – for operational efficiency and or costs.