This paper proposes a three phase shunt active power filter with photovoltaic array and battery, incorporatedwith DC-DC boost converter. The filter consists of a three phase voltage source PWM converter with a DC capacitor atthe input side. It provides source harmonic reduction with reactive power compensation for loads. The PV array isconnected to VSC (Voltage Source Converter) with the help of boost converter in order to maintain the load. Theinstantaneous p-q theory based control algorithm is proposed for the shunt active power filter. In this algorithm, the PIcontroller is used to regulate the DC link capacitor voltage of the converter with respect to the reference value and thereference current calculation is done according to it. The hysteresis PWM current controller gives the switching to theconverter. The effectiveness of the proposed system is verified by using the MATLAB/Simulink software.