Abstract: To address the issue of excessive electricity charges incurred by distributed photovoltaic (PV) users due to low power factors, this paper analyzes users' electrical equipment and electricity consumption data and identifies two main causes: the lack of reactive power compensation and deficiencies in the existing power factor calculation method. It proposes a targeted retrofit plan for reactive power compensation devices, along with an improved method for calculating the average power factor. These improvements enhance the power factor performance of distributed PV users and ensure greater accuracy and reliability in power factor assessments.