The addition of capacitors to the motor load acts as the reactive power supply required by the motor so that the
motor load no longer draws much of the reactive power from the system. The reactive power of the unused power
system into energy is only required to generate magnetic flux on the inductive load. However, this reactive power
remains a burden for power generation which, when the value is large, causes the system power factor to decrease. The
addition of capacitors as reactive power compensators to their applications, most of them are placed close to loads that require reactive power compensation. In this research, experimental research has been done by placing the capacitor
compensator in different position to see the condition of the system response to the condition of the motor installation. Test results indicate the effect of capacitor’s positioning as an improvement of the power factors for a power installation. Power factor improvements will be optimal when capacitors are placed for individual compensation positions compared to global compensation and group compensation positions