Voltage-controlled voltage source inverter (VCVSI) based distributed generation systems (DGS) using renewable energy sources (RES) is becoming increasingly popular as grid support systems in both remote isolated grids as well as end of rural distribution lines. In VCVSI based DGS for load voltage stabilization, the power angle between the VCVSI output voltage and the grid is an important design parameter because it affects not only the power flow and the power factor of the grid but also the capacity of the grid, the sizing of the decoupling inductor and the VCVSI. In this paper, the steady state modeling and analysis in terms of power flow and power demand of the each component in the system at the different values of maximum power angle is presented. System design considerations are examined for various load and grid conditions. Experimental results conducted on a I KVA VCVSI based DGS prove the analysis and simulation results.