This paper offers a novel control approach for voltage source converters (VSCs) known as the Complex Band-Pass Filter-Frequency Locked Loop (CBPF-FLL). This method improves power quality in distributed power generation systems by extracting the fundamental component of the load current through a three-phase to alpha–beta transformation, which involves two steps using the synchronous reference frame-phase locked loop(SRF-PLL). The key advantage of this approach is its elimination of the voltage-controlled oscillator (VCO), which significantly reduces the computational demands associated with trigonometric calculations, thereby providing a faster dynamic response under variable settings. This makes it particularly suitable for systems with frequent and rapid changes. The study examines a wind-solar-based distributed generation system featuring a self-excited induction generator (SEIG) that feeds a nonlinear load with varying electrical situations. The regulator strategy effectively addresses volt-ampere reactive (var) compensation, harmonic reduction, load leveling, and neutral current compensation through the use of a star-delta transformer at the load end. Performance evaluations in both steady-state and transient scenarios, conducted using MATLAB/Simulink, show that the system performs satisfactorily.