An increase in the number of inverter-interfaced photovoltaic (PV) generators on existing distribution feeders affects the design, operation, and control of the distribution systems. The existing distribution system analysis tools are capable of supporting only snapshot and quasi-static analyses. Capturing the dynamic effects of the PV generators during the variation in the distribution system states is necessary when studying the effects of controller bandwidths, multiple voltage correction devices, and anti-islanding. This work explores the use of dynamic phasors and differential arithmetic equations (DAE) for impact analysis of the PV generators on the existing distribution feeders. The voltage unbalance induced by PV generators can aggravate the existing unbalance due to load mismatch. An increased phase unbalance significantly adds to the neutral currents, excessive neutral to ground voltages, and violate the standards for unbalance factor. The objective of this study is to analyze and quantify the impacts of unbalanced PV installations on a distribution feeder. Additionally, a power electronic converter solution is proposed to mitigate the identified impacts and validate the solution’s effectiveness through detailed simulations in Open DSS. The benefits associated with the use of energy storage systems for electric-utility-related applications are also studied.