As a part of prosumer concept, reactive power supply using the end user equipment is evolving. Reactive power injection using end user appliances is used for voltage profile correction, reduction in losses and improvement in power factor. In a radial distribution network, when there are reactive power supplying devices available at different locations, selection of reactive power source will have greater impact on the network. So, the main focus of this paper is to find the optimal location of the bus for reactive power injection based on availability. Since the objective is to reduce losses in the network optimal location is found using the sensitivity matrix for power loss with changes in reactive power injection. Also, the system energy is energy is computed. In order to demonstrate the proposed algorithm a case study is done for IEEE 33 bus radial distribution system in MATLAB programming. Results obtained show that the reduction in losses is about 20%. This proves that end user reactive power equipment is helpful in improving the network profile. © 2017, Springer Nature Singapore Pte Ltd.