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A new technique for grid connected photovoltaic (PV) system that can realize the reactive power compensation (RPC) was presented. The active current and reactive current of the inverter are regulated with changing the amplitude and the phase of the output voltage of the inverter. The active power output and the RPC of the system are realized synchronously at daylight. When the insolation is weak or the PV modules are left unused at night, however, the RPC can still be used, which improves the efficiency of the system. The simulation results validate the feasibility of the technique. [ABSTRACT FROM AUTHOR]