Due to the increase in global warming, the pollutant sources of energy have been replaced with renewable sources and electric vehicles. Vehicles have long halt-time, thus the energy stored in Electric Vehicle can be used for energy supply to grid and reactive power compensation. This work primarily deals with reactive power compensation for industrial load using a STATCOM. The switching and control of S TATCOM is done using hysteresis control scheme. Results indicates that the architecture can successfully generate and absorb the reactive power demand according to the load variations at industrial load end and the THD analysis verify the usability of the system. The model has been simulated in MATLAB/Simulink environment.