A power transfer system provides power factor conditioning of the generated power. Power is received from a local power source, converted to usable AC power, and the power factor is conditioned to a desired value. The desired value may be a power factor at or near unity, or the desired power factor may be in response to conditions of the power grid, a tariff established, and/or determinations made remotely to the local power source. Many sources and power transfer systems can be put together and controlled as a power source farm to deliver power to the grid having a specific power factor characteristic. The farm may be a grouping of multiple local customer premises. AC power can also be conditioned prior to use by an AC to DC power supply for more efficient DC power conversion.