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The increasing demand for energy, combined with environmental concerns, has driven the adoption of renewable energy sources such as photovoltaic (PV) systems. However, integration of PV systems with the electrical grid often introduces issues related to power factor, which can reduce the overall efficiency and stability of the grid. This paper explores methods for improving the power factor in a system connected to the grid with a PV installation. We analyze the challenges of maintaining an optimal power factor in the presence of PV generation, including variations in solar irradiance and grid conditions. A hybrid power factor correction technique involving both passive and active compensation strategies is proposed. The integration of a reactive power controller with the PV inverter system is also examined to dynamically manage the power factor while ensuring maximum energy generation from the solar array. Simulation results demonstrate that the proposed approach effectively reduces harmonic distortion, minimizes reactive power losses, and stabilizes grid voltage, leading to enhanced grid performance and energy efficiency. The findings highlight the importance of advanced power factor correction techniques for reliable and sustainable integration of renewable energy systems into the electrical grid