Energy is a backbone of sustainable development for the countries, especially electrical energy due to its dominancy over other energy forms. To address this energy from the generation stations up to end users it needs high initial investment capital so that developing countries must observe economically feasible installation systems. From distribution substation to electric power beneficiaries, build distribution line infrastructure is obligatory task of the utilities. Most of the time distribution lines are three phase system and they are expensive to extend up to the end especially in rural areas. The best remedy to minimize the cost is using single wire earth return system (SWER), which is taping a single or two wires from the three phase main line depend on its type, therefore it will be the cause of voltage or load unbalance power quality problem. Power quality problem is the cause of sensitive equipment failure. This research should investigate economic feasibility and the impact of existing SWER lines connected on Metema substation; Metema feeder line. In order to overtake the power quality problems caused by SWER, unified power quality conditioner (UPQC) custom device is selected. The analysis is conducted by using MATLAB/SIMULINK software. By using the existing SWER lines connected on Metema feeder instead of three phase system can save 54.61% of construction cost. UPQC has dual advantages, one is used to promote low cost power installation method by mitigate the disturbance, it can improve voltage sag of one phase from 0.75pu to 0.9pu when SWER connected on the one line of three phase feeder and the second is keeping the power system stable when short circuit fault happen on the main MV line. In this research, SWER creates voltage unbalance between three phase line and unsteady active power flow on the Metema substation. UPQC make these voltages unbalance and unsteady power flow to balanced and steady.