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The objective of this research is to analyze and evaluate the performance of the proposed shunt-series switched multi-functional grid-connected inverter (SSS-MFGCI) for mitigating unbalanced voltage sag and swell problem in distributed generation system or microgrid. Three quantitative performance evaluation factors, namely fault level factor, rating factor, and grid stiffness factor, are proposed to evaluate the effectiveness of MFGCI on voltage regulation. Proposed factors are also used to compare the proposed SSS-MFGCI with conventional MFGCI regarding compensable fault level and dependency of MFGCI performance on the grid stiffness for different fault types. Hence, this research presents a comprehensive analysis on how to evaluate the performance of MFGCI on voltage regulation.