APFC Panel has microcontroller based programmable controller which switches the capacitor banks of suitable capacity automatically in multiple stages by directly reading the reactive load (RKVA) which works in the principle of VAR sensing tends to maintain the PF to 0.99 Lag. The capacitor banks may be selected in number of stages as 4/6/8 according to the load pattern. Modern power networks consists of wide variety of electrical and power electronics loads, in case of such varying loads, the power factor also varies as a function of the load requirements .So it is practically difficult to maintain consistent power factor by the use of fixed compensation i.e. fixed capacitors which shall need to be manually switched to suit the variations of the load. It can lead to situations where the installation can have a low power factor leading to higher demand charges and levy of power factor penalties. In addition to not being able to achieve the desired power factor it is also possible that the use of fixed compensation can also result in leading power factor under certain load conditions. This is also unhealthy for the installation as it can result in over voltages, saturation of transformers, maloperation of diesel generating sets, penalties by electricity supply authorities etc. It is therefore necessary to automatically vary, without manual intervention, the compensation to suit the load requirements. This is achieved by using on Automatic Power Factor Correction (APFC) system which can ensure consistently high power factor without any manual intervention. In addition, the occurrence of leading power factor will be prevented.APFC products are fully automatic in operation and can be used to achieve, consistently high power factor under fluctuating load conditions Reduced KVA demand charges, Lower energy consumption in the installation by reducing losses Preventive leading power factor in an installation.