Indonesia has considerable potential for solar energy, but it is currently constrained by restrictions that make it impossible to connect photovoltaic (PV) systems to the grid. This is usually due to problems with the quality of the power, such as a low power factor caused by loads in homes and businesses. Capacitor banks and other old-fashioned alternatives don't work very rapidly, and it costs a lot of money to buy a STATCOM. This paper proposes an optimization utilizing a Grid-Tied PV inverter as a dynamic Power Factor Corrector (PFC). The system employs a Vector Control method that utilizes transformation to differentiate the control of active and reactive power. A Boost Converter with Maximum Power Point Tracking (MPPT) maximizes active power. The inverter, on the other hand, changes the amount of reactive power it adds or takes away dependent on the load's needs at the time. Simulation results show that the system can preserve a unity power factor at the Point of Common Coupling (PCC) even when there are inductive and capacitive loads. The controller was quite precise and didn't make many steady-state mistakes. It could accurately track reference signals when it was in four-quadrant mode. This study indicates that PV inverters can perform well as distributed STATCOMs. This makes the grid more reliable without needing to add any new hardware.