This document describes an automated energy monitoring system and power factor improvement project. The system continuously monitors the power factor of an electrical load and automatically improves it using a capacitor bank. It measures the reactive power consumed by inductive loads and compensates for the lagging power factor. This correction brings the power factor closer to unity, providing benefits like reduced power losses, increased system capacity, and improved voltages. The system uses current and potential transformers to monitor voltage and current. A microcontroller then calculates the power factor and controls relays to switch capacitors on or off as needed to improve the overall power factor.