Power Factor is an indicator of the quality of design and management of an electrical installation. The value of power factor will range from 0 to 1. It relies on active and apparent power.
Active power P (kW) is the real power transmitted to loads. These loads can be motors, controls, lamps, heaters and more. The electrical active power is then transformed into mechanical power, heat or light.
In a circuit where the applied r.m.s. voltage is Vrms and the circulating r.m.s. current is Irms, the apparent power S (kVA) is the product: Vrms x Irms.
Apparent power is the basis for electrical equipment ratings.
The Power Factor λ is the ratio of the active power P (kW) to the apparent power S (kVA):
Loads may be a single power consuming item like a motor even an entire system of motors or controls.