Active power filters can be cost-effective for use in practical systems with the insertion of a few passive elements in shunt or series configuration. The resulting hybrid filters can be designed to provide dominant lower order harmonic elimination and reactive power support by the passive elements so that the burden on the active filter counterpart is reduced. In this paper, the rate reduction in the shunt active filter is estimated when it is connected in parallel with suitable passive tuned harmonic filters. The active filtering system is based on an appropriate control scheme. The simulation and the experimental results of the shunt active filter, along with the estimated value of reduction in rating, show that the hybrid shunt filtering system is quite effective in compensating for the harmonics and reactive power, in addition to being cost-effective.