Cascaded H-bridge converter is a promising solution for next generation large scale PV system having both active and reactive power exchange capacity. However, one challenge with this converter is unbalanced power generation among the clusters or cells due to variation in radiation level, temperature, dusting on PV cells etc. In order to inject balanced power to the grid, in this paper, a controlled exchange of reactive power is proposed so that the converter can work with unbalanced power generation within the clusters. Magnitude of reactive power exchange is derived and necessary conditions to prevent over-modulation is discussed. Additionally, the magnitude of zero voltage is derived taking into account both active and reactive power exchange with the grid. By exchanging reactive power, the converter can also be used during low voltage ride through (LVRT) condition. This paper introduces a novel representation of unbalanced power generation using barycentric coordinate system which helps to identify regions in the power plane which require the exchange of reactive power. The proposed method is verified through computer simulation and in a laboratory prototype.