Considering the economic practicality of implementation and control, operation control issues of SVG in low voltage distribution networks, an improved control strategy is proposed. To meet the power compensation needs of different users and parts, the constant reactive power and constant voltage control strategy is included. To avoid the PI regulation, in constant reactive mode, outer loop q axis current is decoupled through a simple calculation. Finally, a SVG model is developed in PSCAD/EMTDC to verify the proposed control strategy, both the real and simulative data are given. The simulation results prove that the designed SVG has certain practical value, with fast response, good DC voltage stability and well dynamic performance, is easy to implement.