Capacitance plays a crucial role in determining imaginary power in AC circuits, as it influences reactive power. The equation for a capacitor is derived from the relationship between voltage, capacitance, and frequency, specifically V^2/(1/ωC) = V^2ωC. This highlights that dividing by a reciprocal is equivalent to multiplication by the original number. Understanding this relationship is essential for managing imaginary power in AC circuits. The discussion emphasizes the importance of these equations in circuit analysis.