The increasing integration of utility with renewable sources of energy has resulted into serious issues of power quality (PQ) deterioration primarily in a scenario of weak distribution grid. In order to improve the PQ, efficient implementation of a control algorithm for the solar energy conversion system interfaced to the grid is paramount. This article illustrates the usage of an adaptive Laguerre filter based control technique for optimal operation providing distribution static compensator capabilities along with load balancing, power factor correction and harmonics mitigation. Moreover, it provides the active power transfer to the grid together with feeding the nonlinear and linear loads. In addition, the system performance according to an IEEE-519 standard has been verified, hence it is proficient in maintaining the PQ. The Laguerre filter offers the benefits of reduced computational time in addition with the alleviation in model complexity predominant during abnormal grid conditions. By utilizing maximum power point tracking, the efficient utilization of solar PV array is accomplished with a perturb and observe method. For validating performance of the proposed system, it is examined through simulation results. Furthermore, a prototype is developed for validation and test results corroborate reliable operation under nonideal grid conditions comprising of wide range of load variations, voltage sag, swell, distortion, and unbalance conditions.