A system includes a first power source and a variable neutral impedance circuit configured to vary a neutral impedance of the first power source based on presence and absence of a parallel coupling of the first power source with a second power source. The variable neutral impedance circuit may be configured to reduce a neutral current of the first power source when the first power source is operating in parallel with the second power source. The variable neutral impedance circuit may include an impedance coupled in series with the first power source, a bypass switch configured to bypass the impedance and a control circuit configured to control the bypass switch. The impedance may include a resistor.