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It is important that we are clear on the distinction between a product that scams consumers by exaggerated claims of electricity saving through power factor correction (pfc) and a product that scams consumers by claiming it does pfc when it does not.
It is also important to understand that the issues we raise are only applicable to home owners. Commercial companies and industrial users do require power factor correction for the improved reliability of their electrical equipment, to save electricity, and to save on their electrical bill.
There is truth in the fact that our homes have devices which consume electricity at lower power factors. As an example we know that "CFL light bulbs" have a Power factor of between 55% and 70%, while incandescent light bulbs have a power factor of 100%. All electric motors, including fridges, air conditioners, fans and computers generate reactive power which will affect their power factor.
Based on the above information it could sound logical that CFL's are NOT a good fit when it comes to saving electricity. But this is NOT a correct conclusion at all. Power Factor does not significantly affect the amount of electricity actually used.
When the power factor is less than 100% it means that there is a phase shift between voltage and current. Consumer tariffs are based on Real Power, only the electricity actually consumed by a device. The consumer electrical tariffs include provision for the losses which this "out of phase" might cause the electricity supplier.
It is true that electricity suppliers need to manage their distribution networks, and that power factor IS one of the factors that impacts their distribution losses. It is also true that large industrial users are charged a penalty for a net power factor of less than 85%. But distribution losses will not typically be solved by consumers. They are aggregate issues that can only be solved by the utility companies "the smart grid" in partnership with industry and device manufacturers.
Power factor and power factor correction are indeed subjects that we should be aware of, but it is "near fraud" when excessively marketed to home owners as a way to save money on their electricity bill.
We have an overview on "Power Factor"and the definitions for real power, apparent power and reactive power for those who would like to understand more of the technical details on this topic.
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