This paper presents a multifunctional grid connected voltage source converter (VSC), controlled using model predictive control. The VSC acts as an interface between various non-conventional sources and the grid. The DC side of VSC interfaces a solar photovoltaic plant, battery, and supercapacitor systems and an effective power management strategy is developed. The battery is used to either supply or store power and the supercapacitor supplies during power surges or transients. Functional features of the VSC include balancing of grid current, supplying harmonic and reactive components of load current and active power. Simulation results have been shown to validate the functioning of the VSC.