A new hybrid cascaded static var generator (NHC-SVG) topology and corresponding control system are established to address the shortcomings of the cascaded static var generator in the 10 kV power grid, such as large numbers of components and a weak ability to withstand voltage imbalance in the grid. The NHC-SVG topology consists of a five-level neutral point clamped (NPC) power unit and an H-bridge cascaded (CHB) power unit in a hybrid cascade configuration. First, the modulation of the NHC-SVG is achieved by combining the nearest-level approximation modulation with carrier phase-shift modulation. Then, based on the modulated output waveform, a mathematical model of the midpoint potential of the five-level NPC power unit is established to identify the cause of the midpoint potential imbalance. By adjusting the trigger angle corresponding to the level transition time of the NPC power unit and injecting a second harmonic current, midpoint potential balance is achieved, thus establishing the NHC-SVG control system. Finally, taking the voltage balance of the power grid and a 10% margin on the DC side as the design condition, a 10 kV/5 Mvar NHC-SVG is studied and simulated. The results verify the effectiveness of the NHC-SVG and its ability to withstand grid voltage imbalance greater than 4 while compensating for the rated current.