Inefficient electrical systems tend to use a large quantity of ‘reactive’ power (kVAr), which represents the power lost in the operation of inductive equipment such as transformers and electric motors. This invariably increases the total power load represented by your kVA –and reduces your overall energy efficiency, or ‘Power Factor’.
Power Factor is the ratio between your kVA, or total power load, and your kW, or the actual power working for your business. Power factor is measured on a scale between zero and one, with 1.0 representing optimal energy efficiency.