Power Factor
Power Factor for commercial & industrial consumers
6 min read · Updated 2026
What PF means, penalties for low PF, and how APFC panels fix it.
Definition
PF is the ratio of real power (kW) to apparent power (kVA). A PF of 1.0 means all supplied power is useful; below 0.9 you get billed extra.
APFC panels
Automatic Power Factor Correction panels switch capacitor banks in and out to maintain PF above 0.95, cutting demand charges and voltage drop.
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