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Ongoing move towards green power has encouraged greater participation of distributed energy sources (DERs) such as solar photovoltaic (SPV) arrays, fuel cells and wind energy to maximize reliability of distribution system. The major drawback of certain DERs such as SPV sources is that they lack reactive power component. Therefore, reactive power support is an important issue while evaluating reliability of distribution system. Without reactive power support, there may be voltage deviation from prescribed limits, sometimes leading to voltage instability. This paper corroborates the impact of DERs on distribution system reliability incorporating Static Var Compensator (SVCs).