A power factor control panel maximizes energy and cost efficiency while improving the power factor of electrical systems. Steel plants, chemical units, paper mills, and automotive units are among the many industrial sectors which can benefit from such control panel. A power factor is primarily designed to improve power factor for environmental benefits, reduce electric bills, extend equipment life, in addition to reduce drop of voltage in large cables. Addition of automatic power factor control panel is beneficial in improving poor power factor because of the inductive loads. Using capacitors to supply a leading current, power factor correction compensates for the lagging current.