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Power factor is the cosine of an AC circuit's phase angle, where the expression phase angle is the angle by which a load current lags or leads the supply voltage.
Lagging phase angles and power factors occur in resistive-inductive circuits. Leading phase angles and power factors occur in resistive-capacitive circuits.
Most industrial and commercial loads are combinations of heating (resistive) loads and motor (inductive) loads -in other words, resistive-inductive loads. Accordingly, lagging power factors tend to be more common than leading power factors.
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