The ratio of the reactive power to the real power is called power factor (PF). This basically means that for an equivalent real power consumed by a highly reactive load, for example 5W, the actual current that the grid needs to supply to the load in order to provide the real power has to be higher than the real power by the power factor ratio. For the previous 5W example, for a load with a PF of 0.5, the grid needs to provide 2x the current actually required by the load at any given time. This adverse impact on the power grid does not apply to incandescent lighting, which is purely resistive and has a unity power factor.
LEDs have a non-linear impedance as do their drivers, causing the power factor to be inherently low. In order to combat this, the driver needs to compensate for power factor to increase that ratio as close to 1 as possible. When you take into consideration one LED lamp and its impact on the overall PF for an industrial warehouse or shopping mall, it is relatively insignificant, but the sum of all the lighting elements in a large commercial space can significantly impact the overall power factor and correction for either each individual bulb or for the ballasts that drive those bulbs needs to be implemented. Evergreen LED’s product line maintains a PF of .95 or more, we are constantly using the latest technology and components to stay ahead of the competition.