Power factor is driven by the number of inductive loads on a system. Many industrial and commercial  electrical system loads are inductive, meaning they require reactive power (kVAR) to sustain a magnetic field needed in order for the equipment to operate, in addition to the kW which they use to perform work.  The larger the portion of a facility’s load that is inductive, the higher its kVAR draw from the utility and the lower its power factory will be. The loading of this type of equipment also plays an important role in a facility’s power factor.