This paper deals with interaction of 10 kW Solar PV system with grid and study of real power flow from Solar PV to the load and to the grid. The proposed PV power plant system is modeled using MATLAB/Simulink software and its performance is studied. The whole system deals with simulation of a PV panel, MPPT controller, boost converter, and 3ɸ VSI and the control algorithms used in the system. The Solar Photovoltaic system has a MPPT tracking system with DC-DC boost converter to track the maximum power from the solar panels. The MPPT technique implemented in this system is the Modified Perturb and Observe method which is used to improve the efficiency of the system. The interface between grid and solar PV is carried out through a Voltage Source inverter and thus eliminating the current harmonics based on a control technique used in Voltage source inverters. The analysis and control design of grid connected PV inverter using PI control technique is performed in synchronous d-q rotating reference frame to achieve maximum output voltage response and active power. The SPWM (Sinusoidal Pulse Width Modulation), SRFT (Synchronous Reference Frame Theory) and IRPT (Instantaneous Reactance Power Theory) inverter techniques are implemented to control the proposed solar photovoltaic system. A current control strategy with PWM technique is proposed to provide pulse for VSI. This system demonstrates the elimination of harmonics and improves power factor.