With the expanding power demands and increasing use of renewable energy resources, microgrids have been widely supported. Wide bandgap semiconductor devices with higher blocking voltage capabilities and higher switching speeds, such as silicon carbide (SiC) devices, will become a critical component in building microgrids. This paper describes a comprehensive investigation of the effects of SiC Metal-Oxide-Semiconductor Field-Effect Transistors (MOSFETs) on the efficiency and power quality of the inverters used in low voltage microgrids compared with conventional inverters based on silicon (Si) Insulated-gate Bipolar Transistors (IGBTs). First, the characteristics of both SiC and Si are measured by a double pulse test (DPT), considering thermal effects. Then, conduction and switching losses under different temperatures are calculated based on DPT results. Second, phase voltage distortions are modeled and calculated according to the tested switching and conduction characteristics of SiC, resulting in harmonic components in the phase current. Finally, an experiment is implemented. The experimental results show that the SiC-inverter greatly increases the energy efficiency and improves the power quality in the microgrid; these results are consistent with the analytical results. (C) 2016 Elsevier Ltd. All rights reserved.