Distribution losses are one of the major concern for India. According to central electricity authority(CEA) executive summary report May 2017 transmission and distribution losses accounts for about 22%. These losses can be reduced by improving power factor via local reactive power supply. In order to address the above issue this paper proposes a method for distributed reactive power support using end user equipment. The main contribution of this paper is to find the optimal bus location for reactive power injection considering the availability. A sensitivity matrix for power loss with reactive power injection is built for finding the optimal bus location subject to the availability of reactive power support at that location. In order to demonstrate the proposed solution approach, a IEEE 33 bus radial distribution system is taken. Results of the case study are obtained by using MATLAB programming and the same are presented. Obtained results show about 30% of reduction in losses and improvement in the voltage profile. © 2017 IEEE.