With the growing distributed PV installation rate in distribution systems, voltage regulation difficulties such as local voltage violations and fluctuations have become common. To solve the voltage regulation problems, the local voltage regulation method using volt‐var (VV) function is effective for its high regulation speed, high accuracy, and flexibility. However, there are still hurdles on real application, such as parameter setting difficulties, insufficient voltage fluctuation mitigation effect, and unfairness of reactive power generation between PV customers. To further improve the VV function, this paper proposes a PID closed‐loop based VV function and mode‐switching function of PV smart inverter (SI). To validate the proposed methods, numerical simulations were conducted using a 6‐feeder distribution system model based on the JST‐CREST 126 distribution feeder model. According to the simulation result, the proposed method can better mitigate the local voltage violation compared to basic VV function based on the VV curve, also improve the fairness between PV customers, while the total reactive power generation and tap operations increases for the aim of more adequate voltage regulation. © 2024 The Authors. IEEJ Transactions on Electrical and Electronic Engineering published by Institute of Electrical Engineer of Japan and Wiley Periodicals LLC.