Abstract Due to random connection of small-size single-phase rooftop photovoltaic (PV) generators in residential areas, low voltage distribution systems tend to have unbalanced PV integration across phases. In such situations, traditional reactive power compensation methods may cause unintended Voltage-Reactive Power responses across phases due to line coupling, which consequently affects their effectiveness on overvoltage mitigation. Such overvoltage problems significantly hinder the future integration of clean and renewable solar energy resources in power networks. In this paper, the limitations of traditional methods in PV imbalance scenarios are revealed and comprehensively analyzed by a voltage sensitivity method for the first time. On this basis, an innovative joint centralized-decentralized method is developed to overcome the PV imbalance-induced voltage regulation challenge. Specifically, the inverter’s reactive power response to PV power variations in different phases is adaptively scheduled in order to avoid adverse effect of inter-phase Voltage-Reactive Power interaction on voltage regulation. The effectiveness of the proposed method is validated by time-series simulations with recorded data and a real-life low voltage distribution system in Australia. With the traditional method (i.e. power factor droop control strategy), 93 minutes’ overvoltage can be observed in the case study, which will trigger overvoltage protection and disconnect PV inverters from the grid. While, the proposed method can always control the system voltage within the allowable range, and it consequently avoids PV disconnection. By solving this bottleneck issue, more PV systems can be integrated into distribution networks, which consequently contributes to CO2 emission reduction in future.