In a time when energy demands are growing and sustainability is becoming more and more important, making the best use of electrical resources is essential. Modern grid systems are placing an increasing emphasis on power quality and the integration of renewable energy sources. The objective of this study is to enhance the integration of renewable energy sources and power quality in a three-phase grid system. The report contains several important elements to guarantee the effective use of renewable energy and address power quality concerns. Power quality issues such as voltage swells and sags impact the grid system, despite being the main source of electricity. Power quality is enhanced by the Unified Power Quality Conditioner (UPQC's) core, which consists of both series and shunt converters. The series converter is essential for preventing voltage spikes and falls, ensuring a steady and dependable power source. The shunt converter is in charge of reactive power compensation and harmonic mitigation at the same time. To capture solar energy, the system is equipped with solar panels. To optimize the power generation from these panels, a Maximum Power Point Tracking (MPPT) controller with an Adaptive Neuro-Fuzzy Inference System (ANFIS) is employed. This controller increases the energy generation's efficiency. The DC-DC Luo converter is responsible for maintaining a constant DC link voltage. It ensures effective power transmission while managing the energy flow between the solar panels and the grid. When needed, the Bi-Directional Battery Converter makes it easier to discharge stored energy back into the grid and stores surplus energy produced by the PV system. It serves as an energy buffer to improve grid stability and encourage energy-saving practices. Concurrently, the system ensures ecologically friendly and sustainable power generation by optimizing the use of renewable energy sources. This paper is finally developed in MATLAB Simulation 2021a, and various situations are tested to get the desired results. An improved load voltage and current THD value of 0.67% and 1.49% are produced by the proposed UPFC system and the efficiency achieved with the Luo converter is 93%. © 2024 Elsevier B.V., All rights reserved.