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This paper presents a single-phase five-level PV inverter topology with dual reference modulation technique. Two reference signals identical to each other with an offset equivalent to the amplitude of the triangular carrier signals were used to generate PWM signals. Maximum Power Point Tracking (MPPT) is implementation in solar array power system with direct control method. The incremental conductance algorithm is used to track the MPP, as it performs better control under rapidly changing atmospheric condition. The Total Harmonic Distortion (THD) produced by the inverter is reduced. The proposed system is verified through simulation.