Power is an important part of life in the modern world. We are constantly surrounded by things that are powered in some way. In order to provide affordable and safe power, we need to use the best energy systems. Harmonics increase the rms value of the current in the circuit, increasing losses. This has caused many problems in the power system. Harmonics can affect both consumers and the entire distribution system. Sensitive equipment and systems in industrial or commercial facilities can be damaged by harmonics. In other cases, the presence of harmonic breakdown is not readily apparent and indistinguishable from normal device aging. 

Harmonics are a crucial topic in a power system because they have an impact on both the quality of the energy and how effectively the equipment functions. High harmonic levels may cause component overheating and shorten the lifespan of the device. The pure sinusoidal wave produced by a perfect power source is twisted by harmonics. Harmonic distortion makes it difficult for a business to generate and manage its operations. Here are a few financial impacts of harmonic distortion.