The stability of AC voltage is one of the vital drawbacks affecting the power transfer capability. FACTS devices open a new control technology for mitigating this problem to a great extent. But the size, DC link utilization, and stability of the controlling device is still a major concern. The main thrust is to improve the quality of reactive current injected for voltage enhancement in the power system. This paper proposes a new inverter based STATCOM with fewer components and high DC link utilization. This will reduce voltage stresses across the devices. The required DC link voltage is being curtailed by 1.57 times. When compared to multilevel level inverters, less number of switches and one high-frequency switching is required per phase. The simultaneous switching of devices in the same leg eliminates the shoot-through problem. The proposed method improves the quality of injected current for reactive power compensation and load voltage has attained THD (total harmonic distortion) 2%. MATLAB- Simulink platform is used for simulation and verified with experimental results.