System and Method for FACTS Device Bypass Mode Operation and Diagnostics

A system and method using four switches connected in an H-bridge (full bridge) topology within a series-connected FACTS device is disclosed. System and method can be used to bypass a FACTS device. The switches in H-bridge are connected to an alternating current (AC) source allowing for various switching states, and enabling non-monitoring mode, local bypass monitoring mode, low-loss monitoring mode, and diagnostic mode of operation.