We presents improvement and analysis of power quality (voltage sag, voltage swell performance of grid connected inverter used in distributed generation. The developed controller controls power supplied by the DGs at the PCC. The controller is designed to deliver current at unity power factor at PCC. An increase in reactive power demand at PCC due to change of load and grid impedance variation, would affect the system voltage at PC. This project proposes the structure of the designed controller consists of output power with voltage control. The involved voltage factor in creation of harmonics which have direct effects on the Voltage. One of the main causes of the harmonic distortion is nonlinear loads. Voltage level control plays a significant role in ensuring the stable operation of power Systems in the event of large disturbances and faults, and is thus a significant area of research. This paper investigates the improvement of Voltage level of a impromnet by hybrid capacitor.