Power factor performance analysis of PV-integrated institutional buildings using capacitor banks and synchronous condensers

Abstract

The increasing deployment of building-scale photovoltaic (PV) systems can influence power factor (PF) performance in electrical distribution networks, especially when reactive power demand is not properly compensated. Poor PF can increase apparent power demand, reduce distribution system efficiency, and expose consumers to utility surcharge penalties. This study evaluates the impact of PV integration on PF performance and compares two power factor correction (PFC) strategies, namely capacitor banks and synchronous condensers, for two university buildings at Universiti Teknikal Malaysia Melaka (UTeM): the Faculty of Electrical Technology and Engineering (FTKE) and the Faculty of Information and Communication Technology (FTMK). One week of operational electrical data, including active power, reactive power, apparent power, voltage, current, and PF, was collected at the main low-voltage switchboard of each building. The measured data was processed to generate hourly time-series load profiles and used as inputs to MATLAB/Simulink models of the campus distribution network. Four operating scenarios were evaluated: without PV and without PFC, with PV and without PFC, without PV and with PFC, and with PV and with PFC. The results show that both buildings complied with the minimum PF requirement of 0.85 under grid-only operation. However, PV integration without PFC reduced the minimum PF to 0.67 for FTKE and 0.68 for FTMK because grid-imported active power decreased while reactive power demand remained unchanged. Both PFC strategies restored the PF to near unity under PV-integrated operation. The economic analysis shows that capacitor banks are the most practical solution because they provide comparable PF improvement with lower capital cost and shorter payback periods. These findings highlight the need to integrate PV systems with suitable reactive power compensation to maintain PF compliance and improve the economic feasibility of institutional buildings.