What is a power factor and why is it significant in electrical installations?

The power factor is a crucial concept in electrical installations, as it quantifies the efficiency of electrical energy being used. Specifically, it represents the ratio of active (or real) power, which performs useful work, to reactive power, which does not contribute to productive work but is necessary for the functioning of certain devices, such as inductive loads. A power factor of 1 (or 100%) signifies that all the power supplied is being used effectively.

Power factor is significant because a low power factor typically indicates that a substantial portion of the electrical power is being wasted, which can lead to higher energy costs for businesses and homeowners. Utilities often charge extra fees for low power factor because it requires them to generate more power to meet demand. Additionally, inefficient power usage can necessitate larger conductor sizes and more robust equipment to handle the greater apparent power, further increasing costs. Thus, maintaining a high power factor is essential for energy efficiency and cost-effectiveness in electrical installations.