Power Factor is the ratio between KW and KVA drawn by an electrical load where the KW is the actual power and KVA is the apparent power. It is a measure of how effectively the current is being converted into useful work output and more particularly power factor is a good indicator of the effect of the current on the efficiency of the power system. A load with results in the most efficient loading of the supply. Low PF is generally the result of an inductive load such as an induction motor, Power transformer, lighting ballasts, welder or induction furnace. A low power factor due to an inductive load can be improved by the addition of power factor correction panel.