This paper proposes three phase static var compensator(SVC) using three-level inverter with self-controlled DC sources. The proposed SVC system compensates reactive power using phase angle control algorithm. A simple and linear time invariant model is obtained by circuit DQ-transform in the case of phase angle control. Using above model, digital PI controller is designed and implemented with DSP56001 chip. Predicted results are verified experimentally for 10KVA SVC system.