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The high R/X ratio of typical distribution systems makes the system voltage vulnerable to the active power injection from distributed energy resources (DERs). Moreover, the intermittent and uncertain nature of the DER generation brings new challenges to the voltage control. This paper proposes a two-stage stochastic optimization strategy to optimally place the PV smart inverters with Volt-VAr capability for distribution systems with high photovoltaic (PV) penetration to mitigate voltage violation issues. The proposed optimization strategy enables a planningstage guide for upgrading the existing PV inverters to smart inverters with Volt-VAr capability while considering the operationstage characteristics of the Volt-VAr control. One advantage of this planning strategy is that it utilizes the local control capability of the smart inverter that requires no communication, thus avoiding issues related to communication delays and failures. Another advantage is that the Volt-VAr control characteristic is internally integrated into the optimization model as a set of constraints, making placement decisions more accurate. The objective of the optimization is to minimize the upgrading cost and the number of the smart inverters required while maintaining the voltage profile within the acceptable range. Case studies on an actual 12.47kV, 9km long Arizona utility feeder have been conducted using OpenDSS to validate the effectiveness of the proposed placement strategy in both static and dynamic simulations. Index Terms