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Solar PV Installed, but Power Factor Dropped? Here’s How to Fix It


The PV system is doing its job. Daytime grid consumption is down and the inverter output looks normal. Then someone checks the main incomer and finds that the power factor is worse than it was before the solar installation.

That result can look contradictory, but it is not unusual at commercial and industrial sites. The PV system may not have created a new reactive load. In many cases, it has simply changed what the utility side sees at the point of common coupling (PCC).

Why can power factor fall after solar PV?

Power factor is the relationship between active power (kW), which performs useful work, and apparent power (kVA). Reactive power (kvar) is still needed by equipment such as motors and transformers. When a PV system supplies part of the site’s active power, the kW imported from the grid can fall sharply while the kvar demand changes very little. The grid-side power factor then falls.

A simple example makes the point. Before PV, a site drawing 800 kW and 250 kvar has a power factor of about 0.95. If solar reduces the grid import to 300 kW while the reactive demand remains near 250 kvar, the grid-side power factor falls to about 0.77. The numbers are only illustrative, but the mechanism is common.

Three checks to make before changing the compensation system

1 The kW/kvar relationship changed

Compare the PCC data during high solar output, low solar output and after sunset. If grid-side kW drops during the day but kvar stays broadly similar, the lower power factor is mainly a ratio problem. This is the first pattern to confirm.

2 The existing capacitor bank no longer matches the load

A capacitor bank selected before the PV installation may use fixed or relatively large switching steps. Once the grid-side load becomes smaller and changes more quickly, the bank can be too slow, under-compensate or over-compensate. Adding more capacitance without checking the operating data can make the result less stable.

3 The PCC or CT arrangement is wrong

The measurement point matters. A current transformer installed on the wrong side of the PV connection, with an incorrect direction, phase assignment or ratio, can give the controller an incomplete picture of the site. Before replacing hardware, review the single-line diagram and confirm exactly what each CT is measuring.

solar-pv-power-factor-adw300a-ansvg

A practical solution: measure first, then compensate

For this application, ADW300A and ANSVG perform two different jobs. ADW300A is used to see what is happening at the PCC. ANSVG is used to correct the reactive-power condition. The ADW300A does not directly control the ANSVG.

ADW300A: establish the actual operating pattern

Install the ADW300A at the main LV incomer or the agreed PCC, with the CTs located and oriented to capture the total exchange between the site and the utility. It can monitor voltage, current, frequency, active power, reactive power, apparent power and power factor, together with forward and reverse energy. Depending on the selected communication option, the records can also be forwarded for trend review.

The useful question is not only ‘What is the power factor now?’ It is ‘What happens to kW, kvar and power factor when PV output rises, a large motor starts, a production line stops, or the existing capacitor bank changes step?’ A short trend record is far more useful than a single screenshot.

ANSVG: follow a fast-changing reactive-power demand

After the load profile is understood, the ANSVG can be sized for the measured compensation requirement and connected in parallel at the selected LV bus. Using its own voltage and current feedback, it generates the compensating current required by the system. This makes it better suited to changing conditions than simply adding another fixed capacitor step.

The installation still needs proper engineering. CT position and direction, system voltage, available cabinet space, protection, ventilation, harmonic conditions and the required kvar capacity all need to be checked before equipment selection.

Recommended site workflow

01
Step 1 – Confirm the PCC
Mark the utility incomer, PV connection point, major loads, existing capacitor bank and all relevant CT positions on the single-line diagram.

02
Step 2 – Record the before condition
Use the ADW300A to record kW, kvar and power factor during several operating conditions, especially around midday, during production changes and after sunset. Also note when the existing compensation stages switch.

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Step 3 – Separate the cause from the symptom
Check whether the problem is caused mainly by reduced grid-side kW, an unsuitable capacitor-bank sequence, a CT or wiring issue, or a combination of these factors. If the data is inconsistent, correct the metering arrangement before sizing compensation.

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Step 4 – Size and install the ANSVG
Select the compensation capacity from measured kvar demand, not only from transformer size or the old capacitor-bank rating. Install the ANSVG with its own CT and control loop in accordance with the project design.

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Step 5 – Commission and verify
Repeat the same operating checks after commissioning. Compare the before-and-after trends at the PCC and confirm that the result remains stable at both high and low PV output. The utility revenue meter remains the official billing reference; the ADW300A is used for engineering monitoring and verification.

What should be checked separately?

A low power factor reading does not explain every power-quality problem. If the site also has high harmonic distortion, severe three-phase imbalance, frequent capacitor trips or inverter alarms, those conditions should be measured and assessed separately. The final solution may require more than reactive-power compensation alone.

Planning a site review?

Send us the single-line diagram, transformer rating, PV inverter capacity, existing capacitor-bank steps, CT ratios and a short record of kW, kvar and power factor during high and low solar output. From that information, we can help determine whether the next step is a metering correction, a settings change or properly sized dynamic compensation.

Contact: Jack Ren

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Website: www.acrel.my

Final performance depends on the site assessment, equipment sizing, installation and commissioning.


Post time: Sep-03-2026