Abstract In this paper, the power factor of a grid-connected photovoltaic inverter is controlled using the input output Feedback Linearization Control (FLC) technique. This technique transforms the nonlinear state model of the inverter in the d–q reference frame into two equivalent linear subsystems, and then applies a pole placement linear control loops on this subsystem in order to separately control the grid power factor and the dc link voltage of the inverter. Maximum Power Point Tracker (MPPT) that allows extraction of maximum available power from the photovoltaic (PV) array has been included. This MPPT is based on variable step size incremental conductance method. Compared with conventional fixed step size method, the variable step MPPT improves the speed and the accuracy of the tracking.