Recently, renewable energy sources have become more popular in the energy industry. These renewable energy sources should perform reliable operation, providing clean energy to the grid with minimal total harmonic distortion (THD). The paper contributes to the analysis of power quality parameters with and without the use of Custom Power Devices. The proposed analysis was performed for a hybrid system installed in an educational institution. An enhanced power quality strategy for a grid-connected wind farm system based on STATCOM. MATLAB was implemented to execute the simulation. A Simulink model of a modified STATCOM as a shunt active filter is also presented to investigate and improvise system performance. In order to improve grid performance and deal with power quality concerns, the compensator has been designed to enable reactive power. The findings revealed a significant reduction in the current THD.