I agree and disagree...But only by considering "direction" can you determine who is responsible for fixing any problems and how severe the problems are going to be.
I believe I have said that we must consider the direction of power flow so maybe we almost agree+agree. Power factor does not have a direction. Perhaps that is where you & I disagree. Also, I can figure who is responsible for what and the severity of the problem without having to put a sign on the power factor. I can do this with a meter that does not even record the power factor, much less puts a sign on the power factor.
Consider that in our industry there are at least three different ways signs are being added to the power factor number. You started out by asking what the utilities wanted so consider that utilities use four-quadrant metering that is consistent with IEEE measurement standards. We do this to get a complete picture of what is going on with power flow. Q1 & Q4 means we supply watts. Q2 & Q3 means we absorb watts.
As for reactive power, the average value is zero so it really doesn't have a sign either. Nevertheless, we use the concept of complex power representation to put a sign on the var component.
Reactive load in Q1 & Q2 means the load is inductive in nature, like most of the system and adds to our reactive load burden. By convention we call this delivered vars and assign a positive value.
Reactive load in Q3 & Q4 means the load is capacitive in nature unlike most of our system and decreases our reactive load burden (but can cause other issues). By convention we call this received vars and assign a negative value.
When speaking to utility people they will be thinking about Q1/Q2 vs Q3/Q4 if you mention a positive or negative power factor and you will have a very confusing conversation until they figure out what you mean.
I would respectfully recommend you use power conventions used by IEEE and the utility industry, at least while you are working with the utility. It might simplify things to do this on a regular basis since these DG systems will usually involve interaction with utility personnel. It is just my preference and I realize some PQ meters may use a sign notation on the pf (most I have seen do not).
It might make your life and the life of many other contractors a lot easier if they use the predominant standard in the generation and power delivery industry. Not all utility personnel will be well versed in the different usages out there.
As I understand it, the problem is being looked at by inverter manufacturers, which is a good thing.
That's what I understand as well. In the past, PV arrays have not really been on the radar scope for the most part. As they start becoming a significant portion of the system, they start getting more attention.