Renewable energy (RE) has become a focal point of interest as an alternative source of energy to the traditional fossil fuel and other energy sources due to the fact that it is more environmentally friendly, abundant and economically feasible. Many countries aggressively promote feed-in tariff schemes and solar photovoltaic (PV) systems have become one of the fastest growing RE sources that can be integrated into the grid distribution network. This paper reviews the recent development of grid-connected PV (GPV) generation systems comprising of several sub-components such as PV modules, DC-DC converter, maximum power point tracking (MPPT) technique, and an inverter. In addition, various grid synchronization and islanding detection methods are elaborated. The future key challenges to build a smart and efficient GPV generation system were also presented.