An Automatic Power Factor Correction (APFC) panel is a sophisticated electrical system that automatically enhances the power factor of an electrical load. It works by monitoring the electrical load and connecting or disconnecting capacitors to the circuit as needed. This process reduces reactive power, minimizing energy losses and improving the efficiency of the power supply. The panel comprises a power factor relay, capacitors, and contactors, ensuring a maintained power factor near unity, which results in lower electricity bills and prolonged equipment life.