System and method for distribution of inverter VAR support

Power inverters (108, 110, 112, 114) are controlled in response to reactive power support commands received from a power grid (120) such that at least one power inverter provides reactive power to the power grid (120). The reactive power provided is based on each power inverter's reactive power capacity only while the total power capacity of each power inverter providing the reactive power is not exhausted in generating real power.