Photovoltaic (PV) system inverters usually operate at unitary power factor, injecting only active power into the system. Recently, many studies have been done analyzing potential benefits of reactive power provisioning, such as voltage regulation, congestion mitigation and loss reduction. This article analyzes possibilities for loss reduction in a typical medium voltage distribution system. Losses in the system are compared to the losses in the PV inverters. Different load conditions and PV penetration levels are considered and for each scenario various active power generation by PV inverters are taken into account, together with allowable levels of reactive power provisioning. As far as loss reduction is considered, there is very small number of PV inverters operating conditions for which positive energy balance exists. For low and medium load levels, there is no practical possibility for loss reduction. For high loading levels and higher PV penetration specific reactive savings, due to reactive power provisioning, increase and become bigger than additional losses in PV inverters, but for a very limited range of power factors.
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