Power factor is sometimes described as efficiency and affects all types of inductive loads like motors, drives, machines and some types of lighting.
On a motor rating plate you may find the degree of efficiency which in effect is the declared power factor of the motor
A good power factor is a figure described as close as possible to 1.00 which is the target for power factor correction although on some motors with fixed correction the target power factor would normally by 0.95 to ensure overcompensating does not occur due to the less dynamic nature of the arrangement.
More dynamic compensation or correctionreactive power would normally be installed on the main supply in a more general manor, this is normally described as centralised correction and is fully automatic to respond to the fluctuating loads normally experienced on a main supply.
Poor power factors can be described as anything below 0.95 although in general it depends on the size of demand in relation to the poor power factor which determines the degree of financial penalty on electricity bills, penalties through a poor power factor are normally identified as a Reactive Charge or Reactive Power Charge coupled with higher demand charges like Capacity or Availability, it also increases kW/h charges in the form of increased losses.
Through power factor correction you will reduce demand, remove or reduce reactive charges, reduce capacity and availability charges, reduce kW/h losses, reduce carbon emissions and improve utility by reducing circuit currents to a degree that on an overloaded supply, it may be possible to introduce additional loads and still have head room to avoid a costly upgrade of supply.
For more information on power factor correction and efficiency, and the benefits for your organisation, please contact us.