In this paper, the detailed simulation studies for a grid connected solar photovoltaic system (SPV) have been presented. The power electronics devices like DC–DC boost converter and grid interfacing inverter are most important components of proposed system. Here, the DC–DC boost converter is controlled to extract maximum power out of SPV under different irradiation levels, while the grid interfacing inverter is utilized to evacuate the active power and feed it into grid at synchronized voltage and frequency. Moreover, the grid interfacing inverter is also controlled to sort out the issues related to power quality by compensating the reactive power and harmonics current component of nearby load at point of common coupling. Besides, detailed modeling of various component utilized in proposed system is also presented. Finally, extensive simulations have been performed under different irradiation levels with various kinds of load to validate the aforementioned claims. The overall system design and simulation have been performed by using Sim Power System toolbox available in the library of MATLAB.