This paper presents a new multilevel pulswidth-modulation (PWM) inverter scheme for the use of stand-alone photovoltaic systems. It consists of a PWM inverter, an assembly of LEVEL inverters, generating staircase output voltages, and cascaded transformers. To produce high-quality output voltage waves, it synthesizes a large number of output voltage levels using cascaded transformers, which have a series-connected secondary. By a suitable selection of the secondary turn-ratio of the transformer, the amplitude of an output voltage appears at the rate of an integer to an input dc source. Operational principles and analysis are illustrated in depth. The validity of the proposed system is verified through computer-aided simulations and experimental results using prototypes generating output voltages of an 11 level and a 29 level, respectively, and their results are compared with conventional counterparts.