In Photovoltaic applications for example, any fraction of % efficiency gained in the Solar inverter will translate in lower energy bill or shorter time to get to a grid parity. At the same time the inverter cost must cope with declining PV panel costs. In consumer applications like Motor Drives for Home Appliance, the solution cost must be kept within the limits set by a very competitive marketplace. In modern split Air conditioning above 1kW for example, a Power Factor Correction circuit is required to reduce the energy wasted by the system.
Energy efficiency requirements set by Regulatory Agencies in different regions are steering the adoption of very efficient power semiconductors and enabling smart system solutions in order to meet the efficiency standard.