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The analysis and design of an adaptive maximum power point tracking (MPPT) scheme using incremental impedance are presented. A small-signal model is mathematically derived, and the impact of two major design parameters, which are scaling factor and sampling interval, is analyzed in the frequency domain. Four factors which specifically affect the MPPT response are also clearly addressed. Based on this analysis, a design methodology to achieve a desirable transient response, while retaining system stability, is developed. The design methodology is implemented and verified with hardware experiments on a thermoelectric generator battery energy storage system, which indicate agreement between dynamic response and target bandwidth.