Power factor is defined as the ratio of the real power to the apparent power. Ideally, apparent power would equal the real power (a power factor of 1). In this case, all the current in the system is useable.

However due to the nature of the loads applied to the system some of the power is stored in the load and is fed back through the system. Apparent power is greater than real power and the power factor is low. In such a case, a certain amount of current that passes through the system is unuseable. This brings about higher currents which increase the energy lost in the distribution system. This results in a inefficient system which requires larger wires and higher capacity equipment than would be necessary if the power factor were higher.

D.L. Steiner, Inc. can analyze the power factor of your system and recommend equipment to correct this imbalance.