In this paper, we deal with control performance and power qualityimprovement of Microgrid connected Photovoltaic System (PVS) withstorage. A comparative study was conducted between two versions of Fuzzy Logic Controllers: Type 1 (T1FLC) and Type 2 (T2FLC). DCside of the proposed microgrid system is composed of a photovoltaic systemand battery storage. Both are controlled by fuzzy logic algorithmsto extract maximum power from solar panels, and guarantee optimalmanagement of battery storage. AC side is composed of a two-level MultifunctionalVoltage Source Inverter (MVSI) associated with a ShuntActive Power Filter (SAPF) connected to the grid and supplies a nonlinearload. This side is controlled by a Direct Power Control strategyassociated with Space Vector-Modulation technique (DPC-SVM),and an Fuzzy Logic Controller (FLC) algorithm to inject the extractedactive power into the network and compensate the reactive power.The growing integration of Renewable Energy Sources (RES) poses several challenges to Microgrid systems. The T2FLC structureis proposed to better handle those challenges and enhance performance.Simulation of the proposed solution is validated under MATLAB/Simulink. The obtained simulation results show that T2FLC technique provides the best solution in terms of good tracking andoptimization performance, reactive power compensation, Total HarmonicDistortion (THD) elimination caused by non-linear loads,and robustness against irradiance and nonlinear load variations.