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You want a power factor of 1 or 100%, which is a purely resistive circuit. If you have a motor or some other inductive load in a circuit the total voltage and total current in the circuit will not be in phase (phase shift), your power factor will be less than 1. By adding a capacitor (180 degrees out of phase with inductive load) to the circuit that has a capacitive reactance equal to the inductive reactance of the motor, you can cancel the phase shift and have an ideal power factor (no wasted power). Anything above .9 would be good.

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