The rapid integration of photovoltaic systems into the power grid has become more prevalent, necessitating enhancement for reliable and effective power quality (PQ) control. However, the nonlinear characteristics of the power electronic components (PECs) introduce significant PQ and reliability issues. To mitigate these challenges, this paper proposes a novel PEC controller for shunt active power filters (SAPF) to improve PQ and facilitate the seamless integration of renewables into Georgia power grid. The proposed controller utilizes only two levels of discrete low-pass filters to effectively extracts the fundamental frequency dc component from distorted and unbalanced load currents. The controller achieves faster dynamic performance of less than a quarter-cycle delay, in compliance with IEEE 512 standards. The proposed controller is validated against the well-known synchronous reference frame controller. Also, reliability analysis of the PV’s PEC components is conducted to identify the most reliable and efficient model for assessing the PEC’s reliability.