Example 6.8. A factory operates at 0-8 p./. lagging and has a monthly demand of 750 kVA. The
monthly power rate is Rs 8.50 per kVA. To improve the power factor, 250 kVA capacitors are in-
stalled in which there is negligible power loss. The installed cost of equipment is Rs 20,000 and fixed
charges are estimated at 10% per year. Calculate the annual saving effected by the use of capaci.
lors.
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