| Summary: | Abstract This manuscript proposes a novel Solar‐shunt active filter (solar‐SHAF) controller for improving the power flow in a larger power‐application. The proposed fault and non‐linear detection unit (FANDU) avails faster disturbance detection. A novel FAND regulator (FANDR) is suggested to disconnect the solar power generation from the considered system within 10–12 s and the total inverter capacity is used for providing reactive power support to compensate the power fluctuation. A solar active power regulator (SAPR) is proposed to restore the active power output of the solar plant in a ramp‐wise manner after the successful damping of the power fluctuations. The restoration of rated solar power results offers a faster settling time in comparison to the standard grid code limits. The proposed approach is applicable for light, dark, and partial shading conditions. During the dark period, the total inverter capacity is used to compensate the power fluctuations and in partial shading conditions, the inverter is used to balance the solar power at its rated limit. The overall system is designed and tested through MATLAB software by considering different test conditions. It is analyzed that the suggested approach facilitates a significant improvement in power exchange on a 24/7 basis during the local and inter‐area fluctuating mode.
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