Power Factor
Electrical load like motors, transformers, florescent lighting etc require REACTIVE power to set up the magnetic field while the ACTIVE power produces the useful work (shaft horsepower). Total Power is the vector sum of the two and represents what you pay for, ie kVA service capacity charge.
By applying Power Factor Correction Capacitors as shown below, it can be seen that the reactive energy (kVAr) required by inductive loads will be supplied by the capacitors. By applying these capacitors the overall kVA demand will be reduced and obviously the angle Φ will reduce and the power factor improved.
