The Power Factor of a transformer on no load will be about

A. Unity 
B. 0.75
C. 0.5
D. 0.2 

Answer: D. 0.2 

Explanation:
Under no load condition current drawn by transformer can be decomposed into two parts:
Magnetizing component of current (current which produces Flux in the transformer) (wattless current).

Current which takes into account of core or iron losses (eddy +Hysterisis loss) (watt full current)

Under No load condition:
Magnetizing component of current is 4 to 6% of full load current &
Current which takes into account of core or iron loss is 1 to 2% of full load current.

Therefore Magnetizing current is much greater than wattfull current hence at no load condition transformer had very low power factor of around 0.2 lag.

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