The paper discusses improvements in power quality in grid-connected photovoltaic systems using shunt active power filters for reactive power compensation and harmonic mitigation. It highlights the issues of power quality due to nonlinear loads and presents a control strategy incorporating a Perturb & Observe (P&O) maximum power point tracking algorithm. Simulation results demonstrate significant enhancements in grid current quality, reducing total harmonic distortion from 16.03% to 2.93%.