Power factor (PF) is the ratio of real power (used to do actual work) to apparent power (total power supplied). It shows how effectively electrical power is being used.PF = Real Power (kW) / Apparent Power (kVA)It ranges from 0 to 1 (or 0% to 100%).Importance of Power FactorA low power factor means more current is needed to deliver the same amount of useful power, which causes energy losses and increases electricity costs.Common Power Factor ProblemsInductive loads like motors and transformers cause the current to lag behind voltage, lowering PF.Low PF leads to higher energy bills and strain on electrical equipment.Utilities may charge penalties for low PF.SolutionUse capacitors or power factor correction devices to improve PF, making the system more efficient.