Abstract In the present scenario of energy crisis, researches on non-conventional energy sources have grown appreciably. The electrical energy derived from the PV panel is considered as the most useful natural resources. This paper deals with the operation and control of a grid interfaced PV system. Inverter control is achieved by using adaptive hysteresis current control scheme. The proposed inverter control technique interfaces renewable energy source and the AC bus of micro grid. It provides the possibility of injecting power from the renewable sources and favours reactive power compensation. The resulting controller is simulated in MATLAB/SIMULINK and results are analyzed.