This document summarizes a research paper on minimizing penalties in industrial power consumption by using automatic power factor correction (APFC) units. It discusses how inductive loads in industries reduce the power factor below standards set by electricity boards, resulting in penalties. An APFC device uses a microcontroller to measure voltage, current, power factor and automatically switch capacitor banks to compensate for reactive power and improve the power factor. Test results showed the power factor increased from 0.67 to 0.95 after installing the APFC unit, reducing penalties for the industrial consumer. The automatic switching of capacitors provides a more accurate method of power factor correction compared to manual switching.