An apparatus and method is provided for identifying a faulted phase in at least one shunt capacitor bank. The apparatus generally includes a sampling circuit for sampling current or voltage signals associated with the shunt capacitor bank. A microcontroller is coupled to the sampling circuit and programmed to measure a compensated neutral point phase angle from the sampled signal, and compare the compensated neutral point phase angle with a fixed reference phase angle to identify the faulted phase of the shunt capacitor bank. The method generally includes the steps of sampling a current or voltage signal associated with the shunt capacitor bank, determining a compensated neutral point phase angle from the sampled signal, and comparing the compensated neutral point phase angle with a fixed reference phase angle to identify the faulted phase of the shunt capacitor bank. The invention also relates to an apparatus and method for identifying the location of the fault (e.g., the section of the bank) in a double ungrounded shunt capacitor bank or double WYE shunt capacitor bank.