The incorporation of renewable energy sources into the grid is made possible through the advancements and growth of control tools within power electronic converters. The grid that is connected to renewable energy sources (RES) is to minimize carbon emissions and other emissions of air pollutants in the environment, and to maximize the amount of renewable energy consumption with good economic benefits and high reliability with low running costs. This is possible with the current controlled voltage source inverter (CCVSI) that does dual function as a shunt active power filter and as a power converter, which minimizes the power quality issue. The Hysteresis controller is employed to regulate the distribution of actual and reactive power in RES and Grid. The reference current is generated using instantaneous real-reactive (PQ) theory to minimize Total Harmonics Distortion (THD) to maintain the sinusoidal grid current and to control the grid reactive power to attain Unity Power Factor (UPF). To test the effectiveness of these three different climatic conditions are taken into consideration, i.e., nil renewable power, lacking renewable power, and surplus renewable power. The effectiveness of the system is simulated and proven using MATLAB/Simulink.