Induction electrical equipment takes more power from the electrical supply system than is necessary to produce the work required. Power factor is a term used to describe or measure the amount of energy needed by an electrical induction system to establish the magnetic fields that enable the motor to do work. Power factor is defined as the ratio of the true power used in an electrical circuit, to the power which is apparently being drawn from the source.
Power Factor Correction Capacitors are used on motors to correct the power factor. A properly sized capacitor will offset most of the lagging current of a motor and raise its power factor to about 95%.
Sizing PFCCs (see PB210 Appendix)