Electricity drives economic growth, technological advancement, and improved quality of life, but it also poses environmental pollution challenges due to reliance on traditional energy sources such as petroleum and natural gas. Distribution systems’ extensive reach makes it easier to integrate different renewable energies, particularly solar power, across different voltage levels. While integrating solar photovoltaic (PV) cells into existing traditional distribution systems may seem straightforward, studies reveal that their unchecked proliferation can lead to increased electrical losses and greater disruptions in power quality. This study introduces a coordinated methodology of PV energy systems and capacitor bank (CB) devices in electrical distribution feeders. The presented coordinated integration offers a sustainable energy solution for mitigating system losses, facilitating voltage profile enhancement as an important power quality indicator for adequate customer operation. In this regard, practical concerns include variations in power loadings, the discrete nature of CBs, and actual power production from PV sources are taken into consideration. For handling the presented coordinated integration, this paper develops the electric eel foraging-based optimization (EEFO) for energy efficiency and power quality improvement as well as environmental sustainability. The designed EEFO has been evaluated on practical Egyptian and standard IEEE distribution systems, demonstrating its effectiveness in minimizing energy losses and improving power quality. Comparative studies against reported algorithms validate EEFO’s superior performance.