Many commercial businesses require the use of pumps, refrigeration units, air conditioning systems, lighting systems and the like which are no different than most homes however in terms of size their requirements mean super sized systems with expensive power bills.
Since the currents flowing in inductive and capacitive loads are half a cycle out of phase, it is possible to make their sum zero at any particular time by adjusting their magnitudes, consequently reducing the total current magnitude flowing through the Energy-meter (kW-hour meter) installed by the local distributors to monitor energy consumed by a subscriber.
OK lets get into what exactly is power factor. Your home or business power factor is a measure of the efficiency with which you utilize electricity from your buildings electrical distribution panel. Otherwise known as your breaker panel or just the electric panel but not to be confused with a fuse box which I will explain later.