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A multifunctional photovoltaic inverter system providing additional functionalities is introduced. Beside the intrinsic injection of PV energy, improvement of power quality and reliability (PQR), reactive power compensation, peak shaving and provision of ancillary services is conceivable. Such systems are of economical interest since the combination of two systems is less expensive and PV energy is priced at special tariffs in several countries. Within a research project funded by the German government a prototype in the range of 100 kVA is being developed by ISET e.V.1 and SMA Solar Technology AG. Testing is performed in laboratory and at a test site in an industrial environment. This paper describes the technical realization of the system and provides results concerning practicability of the addressed additional functionalities in terms of simulations and measurements.