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Distributed Generation source are widely used because of their remarkable advantages. Photovoltaic (PV) cells which produce DC voltage in their output belong to these sources and should be connected to the network through a power electronic interface. At the other hand, considering PV characteristics show that maximum power can be extracted at the optimal operating point which depends on the solar radiation as well as ambient temperature. So, a DC-DC converter is usually used between PV module and inverter to keep PV module at its optimal operating point. In this paper, PV module is connected to the DC side of STATCOM that leads to elimination of DC-DC converter. A modified current-based MPPT method and also, a developed STATCOM controller are introduced. Using this system, PV module always works in its optimal operating point and moreover, STATCOM does its expected tasks such as load voltage regulation and reactive power compensation. The components of proposed system with their function are explained well in the present paper and finally, a sample system is simulated by MATLAB/Simulink software to verify the advantages of proposed integrated system.