This project aims to enhance power quality using a renewable-energy-based solar system. It proposes the integration of a three-phase Shunt Active Power Filter (SAPF) with a modern three-level Flying-Capacitor (FC) inverter. The approach addresses key power quality issues, including reducing Total Harmonic Distortion (THD) in source currents, compensating reactive power, improving power factor, and injecting solar-generated energy into the grid. A multilevel NPC inverter–based SAPF is utilized to achieve these objectives. The system employs the Adaptive Neuro-Fuzzy Inference System (ANFIS) to regulate the DC-link voltage and uses the Synchronous Reference Frame (SRF) theory to extract reference currents for compensation. A Hysteresis Current Controller (HCC) generates the inverter’s switching pulses, effectively minimizing harmonics produced by balanced and unbalanced nonlinear loads. Solar energy utilization is further optimized through an Enhanced Incremental Conductance (EINC) MPPT controller, ensuring maximum power extraction and delivery to the grid. MATLAB/Simulink results validate the proposed design, demonstrating significant reduction in harmonic distortion, stable DC-link voltage regulation, and improved overall power quality under various load conditions.