The increasing penetration of power electronics-based distributed energy resources (DERs) displacing conventional synchronous generators is rapidly changing the dynamics of large-scale power systems. As the result, the electric grid loses inertia, voltage support, and oscillation damping needed to provide ancillary services such as frequency and voltage regulation. This paper presents the multi-mode operation of a Z-source virtual synchronous generator (ZVSG). The converter is a Z-source inverter capable of emulating the virtual inertia to increase its stability margin and track its frequency. The added inertia will protect the system by improving the rate of change of frequency. This converter is also capable of operating under normal and grid fault conditions while providing needed grid ancillary services. In normal operation mode, the ZVSG is working in MPPT mode where the maximum power generated from the PV panels is fed into the grid. During grid faults, a low voltage ride through control method is implemented where the system provides reactive power to reestablish the grid voltage based on the grid codes and requirements. The proposed system operation is successfully validated experimentally in the OPAL-RT real-time simulator.