<b>Modelling and Analysis of Grid Connected PV System under Different Penetration Level of PV</b> In the last two decades there is very sharp rise in the power generation from the solar system. This is due to the increasing solar cell efficiency, decreasing PV system costs, increasing government support, and many other factors collectively help in reduce the barriers of growth for PV systems to expand their participation to the total world energy sector. The drawbacks of the inverters which are currently used in grid connected PV system are well known. As the penetration of PV system is increasing day by day this problem is becoming more significant. This paper provide a solution in the control of inverter by regulating the active power and reactive power. The proposed control scheme helps in providing grid support by PV system as well as reducing the harmonics contents in the power hence improving power quality. The design, modeling, and analysis of a grid tied PV system was performed in the MATLAB software simulation environment. Results indicate that in the presence of grid disturbances the proposed inverter can react dynamically to help restore the power system back to its normal state. A harmonic analysis was also performed indicating the inverter under study met the applicable power quality standards for distributed energy resources. 20-25 Issue-4 Volume-2 Javeed Ahmad Khan