The deeper penetration of renewables in the energy mix is an intense requirement in order to reduce global carbon dioxide emissions. In addition, new technologies are being developed, such as electric mobility and Distributed Generation (DG) in urban areas. However, the unpredictable fluctuations in energy generation from roof-installed PVs and the switching operation of their inverters greatly aggravate the already-present grid quality problems. In this paper, the Smart Boiler (SB) concept for grid quality improvement is presented. Furthermore, its experimental verification is implemented on a flexible testbed that accurately emulates several realistic scenarios for the low voltage distribution grid, under complex operating conditions. The proposed low-cost electronic kit, which contains a converter of fairly simple topology and requires connection to the internet, is used to upgrade conventional domestic boilers to smart devices. The SB automatically regulate the local reactive power flow, helping to stabilize the voltage level and suppress the grid current harmonic content, with both services provided in a matter of seconds. The higher the active power consumed and the denser the SB cluster, the wider the beneficial impact on the affected network area. While this service is provided, excess energy generated by PVs is temporarily stored as heat in the boiler tanks, given the users’ hot water consumption habits. The whole application, as a powerful demand-side management tool, proves beneficial for both the network operator and the end-user, especially when self-consumption is desirable in order to achieve a Nearly Zero Energy Building.