From the category archives:

Power Factor Correction

Power factor correction is an optimisation and reduction of the load from an imbalanced electrical power distribution system, corrected using electrical capacitors.

As well as having actual power that is being used (namely “actual power”), a site would also draw upon additional power (namely “reactive power), which is not used directly. Both of real power and reactive power equate to being the “apparent power’. Power factor is the relation and difference between the actual and apparent power.

So if your site has a large amount of reactive power, you’re very much wasting energy, and are paying unnecessary high demands of electricity.

It’s like having extra power than actually required if prepared & implemented correctly, so this essentially is a way to remove that extra power from the equation and in return, saving your power output and electricity usage.