In this study, an efficient and reliable grid supported solar-powered water pumping system (SPWPS) employing a 4-phase SRM (Switched Reluctance Motor) drive for uninterrupted water supply is proposed. The grid is used as a secondary source and ensures the water supply continuity irrespective of solar power availability. The power-sharing by both sources in the system, is regulated through a power factor corrected (PFC) grid side three-level boost converter. The working of a three-level boost PFC converter in continuous conduction mode (CCM), offers a reduced current rating of the inductor and switching devices. A new control logic is developed and implemented in this system in order to achieve the power quality improvement in terms of total harmonic distortion (THD) and power quality indices as well as to compensate for the uneven voltage across DC link capacitors of a mid-point converter. A generalized integrator based fundamental voltage extraction algorithm is also incorporated in developed control to mitigate the DC offset and harmonic contents present in the supply voltage. The applicability of the system with developed control logic is verified by both simulation and experimental results.