This study provides an adaptive control approach of VSC (voltage source converter) coupled with SPV (solar photovoltaic array), in a 3P3W (three-phase three-wire) system with three single-phase non-linear loads having Distributed Static Compensator (DSTATCOM) abilities using P and O (perturb & observe) methodology. The adaptive control technique converges quickly and has a low mean square error. For the correction of power factor and zero voltage regulation modes, the system is studied and simulated. The system’s great efficacy at high voltages is due to its one-stage structure. Grid current harmonics are significantly below the IEEE-519 norm. The suggested system is modeled and simulated with the available sim power system toolbox in MATLAB/Simulink, and the system’s behavior under different loads and environmental circumstances is confirmed.