This paper proposes a novel switching strategy of 1Mvar STATCON using cascade multilevel H-bridge inverter(HBI) for FACTS application. To control the reactive power instantaneously, the d-q dynamic system model is described and analyzed. A single pulse pattern based on the SHEM(Selective Harmonic Elimination Method) technique is determined from the look-up table to reduce the line current harmonics and a rotating fundamental frequency switching scheme is presented to adjust the DC voltage of each inverter capacitor at the same value. So the voltage unbalance problem between separately DC bus voltage is improved by using the proposed switching scheme. As a result, the presented inverter configuration not only reduces the system complexity by eliminating the isolation at the AC input side transformer but also improves the dynamic response to the step change of reactive power.