We propose an algorithm to set the parameters of volt-var curves to improve the performance of distributed generation. Specifically, we optimally set the volt-var curves of the smart inverter for proper control of the distributed generation output. To improve the overall distribution system performance, we consider the minimization of voltage deviation, system loss, and peak of reactive power in an objective function, thereby providing optimal volt-var curve parameters. The proposed algorithm overcomes various limitations of existing studies. First, we use distribution system factors in a multiobjective optimization function to adjust volt-var curve parameters that deviate from the default settings. Second, we consider the service transformers that affect the system voltage according to the photovoltaic generation output in the test model during optimization. Third, we analyze the system improvement according to the number of parameters to be optimized. Fourth, we analyze the implementation of the optimized volt-var curve according to the practical periods when the smart inverter settings can be updated. Fifth, we evaluate different suitable voltvar curves for multiple photovoltaic generators grouped using clustering. Using the proposed algorithm, the distribution system operator can set the optimal volt-var curve according to the system conditions and requirements. We conducted simulations of the proposed method using OpenDSS, a quasistatic time-series simulation, on a test model reflecting the characteristics of a South Korean distribution system. The simulation results confirm that the overall system performance increases when the optimal volt-var curve settings obtained from the proposed algorithm are used. INDEX TERMS Distribution system, parameter optimization, smart inverter, volt-var curve. NOMENCLATURE i Bus index t Time (h) (year: 8760 h; spring: 2208 h; summer: 2208 h, fall: 2184 h; winter: 2160 h) vvnew Parameter (gene) for newly updated volt-var curve (Vvv2, Vvv3, Qvv1, Qvv4) vvcon Conventional volt-var curve parameter in Fig. 5 Pt(vv) System loss at time t according to volt-var curve parameter Vref Reference voltage, 22.9 kV, 1.00 pu ω Weight for system factor (voltage deviation, system loss, peak of reactive power) Vi,t Voltage of bus i at time t according volt-var curve parameter δVi,t(vv) − , () , voltage deviation index of bus i at time t Qi(vv) Reactive power output at smart inverter of bus i according to volt-var curve parameter Nconst Constraint condition ωc Penalty coefficient PFc Constraint weight E Disjoint subset of input pattern l Clusters index k Number of clusters Si Set of points belonging to cluster i µi Center of cluster i O• Objective function I. INTRODUCTION