In this paper, the structure, coordinate control method, and parameter design of a hybrid system are proposed for active power injection and nonactive power (reactive, harmonic, and unbalance power) compensation. The proposed hybrid system consists of a static var compensator (SVC) in parallel with a capacitive-coupling grid-connected inverter (CGCI) (SVC//CGCI). In SVC//CGCI, the SVC part is used to dynamic compensate the reactive power and unbalance power, while the low rating CGCI part is used to inject active power, provide harmonic power and a fixed amount of capacitive reactive power. Compared with conventional inductive-coupling grid-connected inverter (IGCI), the CGCI can provide active, reactive and harmonic power with low rating of active inverter part. The cost of the SVC part is much lower than that of active inverter part, thus the reduction of inverter rating can lead to a decrease in the total cost of the SVC//CGCI. Therefore, the SVC//CGCI can be a cost effective solution for active power injection and nonactive power compensation. Finally, simulation and experimental results are provided to show the advantages and validity of the proposed SVC//CGCI in compared with the conventional IGCI and SVC//IGCI.