I think all they are doing is correcting the lagging power factor of the inductive motor by connecting some capacitors with leading power factor in parallel with it to bring the power factor closer to unity.

The actual power supplied by the electric company is the vector sum of the lagging motor current and the leading current of the capacitors.

So the actual power supplied by the electricity company will be LESS if the power factor is brought closer to unity.

Power companies do this themselves with huge capacitors to reduce the load on their generators by dragging the power factor of their loads back towards unity.

An AC current with unity power factor is like a DC supply where the current is in phase with the voltage.

For the power companies supplying loads with lagging power factor is inefficient as it requires more power as the actual power supplied is Watts = Volts x current x the power factor.













Good article which explains what the chap in the video is trying to sell.   https://proluxelectrical.com.au/energy-efficiency/power-factor-correction.html