There has been increased attention in the industry to solve consumer related power quality problems using photovoltaic based grid-tie inverters. The main idea here is to integrate active power filter features on the control algorithm of conventional on-grid photo-voltaic (PV) inverters. However, such products have not yet matured broadly in the market and calls for more research. In this study, we show a simple and effective method to suppress grid current harmonics during pushing the harvested power from PVs to the grid. The proposed grid-tie inverter can also support reactive power requirement on the load side. Moreover, the performance of the proposed control strategy is compared with the conventional grid-tie PV inverter. The proposed system is modelled using MATLAB/Simulink and also tested in real-time environment. Results are then presented as a verification of the studied system.