In this study, a minimizing inverter capacity design is proposed, and the characteristics and performance of static VAR compensator (SVC) coupling hybrid active power filters (SVC-HAPFs) are analyzed. The cost of the SVC part is much lower than that of the active inverter part, and thus, the reduction of inverter part capacity can lead to a decrease in the total cost of SVC-HAPF. To demonstrate the advantages of the proposed minimizing inverter capacity design of SVC-HAPF, comparisons are given between the conventional and the proposed SVC-HAPF designs. Comparisons are also provided among active power filters (APFs), HAPFs, and the proposed SVC-HAPF in terms of dc-link voltage, compensation range, and performance. Finally, simulation and laboratory-scale experimental results are given to validate the minimizing inverter capacity design, and to verify the characteristics and compensation performances of APF, HAPF, and the proposed SVC-HAPF.