The increased non-linear loads in today’s typical home are a growing concern for utility companies. To mitigate the harmonic distortions, passive or active filters are typically used. However, with the increasing implementation of distributed generation (DG) in residential areas, using DG systems to improve the power quality is becoming a promising idea, particularly because many DG systems, such as photovoltaic (PV), wind and fuel cells, have DG-grid interfacing converters. the potential for using photovoltaic (PV) interfacing inverters to compensate the residential system harmonics is explored.