Power factor is an energy related efficiency ratio for AC (alternating current) electrical loads and complete electrical installations. Power factor is the ratio between the real power measured in kilowatts (kW) and the apparent power measured in kVA consumed by an AC (alternating current) powered electrical device or electrical installation. The ratio therefore measures how efficiently electrical power (input) is converted into useful work (output) from the system being measured. The closer the measured power factor is to Unity (1) the more energy efficient the system.