What is power factor?

What is power factor and how is it measured?

Power factor is the measure of how effectively your business uses its electricity supply. It is the ratio of real power (kW) to apparent power (kVA). A site with low power factor draws more apparent power than real power. So, if your power factor is low you may be paying more than you need to for your electricity.

Power Factor =  Real Power (kW)  ÷  Apparent Power (kVA) 

• Real power (kW) is the amount of power which is actually used to power equipment
• Apparent power (kVA) is the total amount of power that is supplied by Ausgrid to the site
• Reactive power (kVAr) is the amount of power that does not perform any real work, but comes about as a result of your voltage (supplied) and the current (drawn by equipment on your site), being out of phase. The larger this difference, the lower the power factor.

How to assess your power factor

We encourage customers to have their power factor correction assessed by their electrical service provider. Visit how to get started where you will find guidelines to help you on your way.

Further information

Download our full list of FAQs or Power Factor brochure for more information.