India has moved up to the fourth position globally, following Germany, Spain, and USA with an installed capacity of 11 806.69 MW at the end of March 2010. India has some special requirements. The penalty for low power factor is severe, but European designs do not have provision for compensation to this level. In Tamil Nadu, the Tamil Nadu Electricity Board has introduced the penalty only in the late 1990s. Since most of the wind turbine generators are being imported from European countries and as the principals have failed to understand the problem and provide solution, most of the Indian subsidiaries have approached third parties. A wide range of reactive power compensation schemes are available today. The cheapest and easiest solution preferred was to add more contactors and more capacitor steps. This will reduce the reactive power consumption but results in other problems. There is no systematic study to evaluate losses and scope for improving productivity. This article is an attempt to make realistic evaluation of wind farms provided with different systems in Tamil Nadu, India. To enhance the power yield from the wind farms, several methodologies are proposed.