In power analysis, the power factor (pf) is like a compensating factor due to the load. To deliver the same power, we need to compensate by an amount given by the pf. it’s given by:

Since power is given by:

For a purely resistive load, the phase shift is 0. But for a capacitive or inductive load, the phase shift . To see the same power as the resistive load, we need to have a larger amplitude in voltage and current.

If the power factor is lagging, then this means on the power triangle and .

Utilities providers usually apply special charges if customers have loads with low power factors.