In this paper, the transformerless three-phase line-connected PV PCS (photovoltaic power conditioning system) is proposed. An improved P&O (perturb and observe) MPPT (maximum power point tracking) algorithm that prevents local maximum power point tracking is proposed. By controlling the three-phase line-connected voltage source inverter using outer DC-link voltage controller, inner current controller and microcontroller friendly simplified space vector modulation (SVM) method, a unity power factor is achieved. An algorithm is suggested to control the DC-link voltage faster and more correctly for the increase system stability and power factor. All algorithms and controllers are implemented on a single-chip microcontroller and the superiority of the proposed algorithms and controllers is proved by experiments.