SVG (Static Var Generator) is a device used to control the flow of reactive power in the electrical grid. It's crucial for maintaining voltage stability, improving power factor, and ensuring grid compliance, especially in large commercial PV installations.

How does SVG work?

SVG uses power electronics to inject or absorb reactive power into the grid, effectively adjusting the voltage and power factor. It can quickly respond to changes in grid conditions, making it suitable for use in solar plants where power generation fluctuates. 

The DC power provided from the solar panel goes through a device called an inverter to be converted to AC. Here by stopping the flow of the reactive power to the inverter by some form of variable and controllable capacitor increases the power and efficiency of the inverter.

The SVG Static Var Generator is an electronic reactive power compensation system, for both capacitive and inductive power. It has the same operating principle as an active filter where it uses power electronics to injects a current in the opposite direction to counteract the installation’s non-useful power (inductive and capacitive) or absorb reactive power into the grid, effectively adjusting the voltage and power factor thus ensuring that the target cosϕ is achieved in the following manner-

• Improved Efficiency : By correcting power factor and regulating voltage, SVG helps solar plants operate more efficiently and produce more power. 
• Grid Stability : SVG ensures the solar plant doesn't disrupt the grid's stability, promoting a more reliable and stable power system.
• Compliance : SVG helps solar plants meet regulatory requirements related to voltage and power factor, avoiding potential penalties.
• Reduced Losses : By improving power factor, SVG reduces line losses in the grid, saving energy and money