The present disclosure is directed to a system and method for balancing reactive power loading between multiple renewable energy power systems coupled to a power grid at a point of regulation (POR). The method includes determining a voltage error based on a voltage reference and a measured voltage at the POR. The method also includes measuring at least one operating condition from each of the power systems. Further, the method includes determining a per unit actual reactive power for each of the power systems based on at least one of the actual operating conditions and determining a per unit average reactive power from the power systems based on at least one of the actual operating conditions. Thus, the method also includes determining a voltage reference command for each of the power systems as a function of the voltage error, the per unit reactive power, and/or the per unit average reactive power.