Abstract—Reactive power is a subject of great concern for the
operation of Alternating Current (AC) power systems. It has
always been a challenge to obtain the balance between a minimum
amount of reactive power flow to maximize capacity for active
power flow and a sufficient amount of reactive power flow to
maintain a proper system voltage profile. This work mainly deals
with the compensation of reactive power by using Solar
Photovoltaic Power System. Single-phase matrix converter is used
for developing AC voltage. Single-phase matrix converter can be
used as a Rectifier and as an Inverter. The same system could be
used for real power exchange utilizing free energy (Solar) thus
minimizing the utility power supply. Bidirectional energy flow is
possible with matrix converter for battery charging. Use of matrix
converter improves the quality of output voltage with reduced
Total Harmonic Distortion. Sinusoidal Pulse Width Modulation
(SPWM) is used for generating pulses to the matrix converter.
Digital control of proposed real and reactive power compensation
improves the overall efficiency of the system and reliability.