Hence Power Factor can never be greater than 1.00
Power Factor at best can be equal to 1.00
Usually P.F is always Lag (Inductive): This is because in any industry, the majorities of the Loads (for e.g. Induction Motors, etc.) are Inductive in nature and consume reactive power to meet their magnetic field requirements. Some times P.F can be ?Lead? (Capacitive): This situation normally arises when there are excessive Capacitors in the installation compared to actual kvar requirement of the Inductive Loads in the installation. Industries use large number of AC motors, DC Drive, Rectifier, Compressors, Induction Furnaces and Welding Machines resulting in lower Power Factor.
In Such Industries, Reactive Power varies rapidly within every few cycles. Such uncompensated Reactive Power leads to poor P.F Voltage Instability, Flickering, High Current consummation increase in Maximum Demand, High Losses, Low Electric Supply Loading Capacity & Over Heating of Switchgear and Cables, High Wear & tear of Switchgears and Cables. Low Power Factor results in to heavy penalties.
The equipment for Power Factor improvement serves the purpose to relive the electrical supply of inductively operating consumer by the reactive current & thus saves operational cost. The conventional systems are not suitable for compensating rapid variable reactive power demand.