Power Factor [4] is the existing relation between the true power (P) or real average power and the apparent power (S) or the complex power [Ref.3, ch.3].
As the power factor drops the system becomes less efficient. A drop from 1.0 to 0.9 results in 15% more current being required for the same load.
A power factor of 0.7 requires approximately 43% more current; and a power factor of 0.5 requires approximately 100% more current.
The objective, therefore, should be to reduce the reactive power drawn from the supply by improving the power factor.
If an AC motor were 100% efficient, it would consume only active power but, since most
motors are only 75% to 80% efficient, they operate at a low power factor. This means poor energy and cost efficiency because the Electricity Companies charge you at penalty rates for poor power factor.
Power factor definition (We hope you find this useful!)

