At this time, efficient power generation is critical because power leakage is a global problem. The power factor of a machine tests its power efficiency and is a significant factor in improving supply quality. A low power factor caused by high lot of utilises of inductive load is often ignored in the majority of control systems. A power factor correction unit will enable the system’s power factor to be restored to near unity for cost-effective operation. Reduced power system losses, enhanced load carrying capabilities, improved voltages, and other benefits of power factor correction are only a few of the benefits. The aim of this program is to develop an Power Factor Correction Unit which can monitor a system’s energy consumption and increase its power factor. For accurate power measurement, an open source energy monitoring library was used in the design. The energy monitor unit measures the reactive strength absorbed by a load network and uses capacitor bank to compensate for the lagging power factor.