Abstract: This paper leads a way to mitigate the harmonic distortion in micro grid system. In conventional system capacitors and voltage source inverter (VSI) are used to generate reactive power and to inject the compensation current into the grid [2],[3],[4]. The performance of SAPF is mainly depends on controllability of DC link voltage [6]. The main objective of this paper is to improve the exploit of the Shunt Active Power Filters (SAPF) by adding RE source in the DC link side. In proposed technique the capacitor banks are replaced by clean renewable energy donors from fuel cell, solar power, bio gas and wind mill generator etc. Among this we prefer PV panels for effective compensation due to its current controllability and the preferable output characteristics. Due to the addition of this Shunt Active Power Filters (SAPF) the power carrying capability of the grid lines must be improved and the efficiency of transmission can be extended. The additional real power demand in the micro grid has been meeting out with the help of this new topology. The output results are observed from MATLAB/Simulink environment.

Keywords: Photovoltaic (PV), Shunt Active Power Filter (SAPF), Maximum Power Point Tracking (MPPT), Total Harmonic Distortion (THD).