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This paper presents a novel DC-AC converter for applications in the area of distributed energy generation systems, e.g., solar power systems, fuel-cell power systems in combination with supercapacitor or battery energy storage. The proposed converter is realized using an isolated multicell topology where the total AC output of the system is formed by series connection of several full-bridge converter stages. The DC links of the full bridges are supplied by individual DC-DC isolation stages which are arranged in parallel concerning the dc input of the. total system. Therefore, all switching cells of the proposed converter can be equipped with modern low-voltage high-current power MOSFETs, which results in an improved efficiency as compared to conventional isolated DC-AC converters. Furthermore, the cells are operated in an interleaved pulsewidth-modulation mode which, in connection with the low voltage level of each cell, significantly reduces the filtering effort on the AC output of the overall system. The paper describes the operating principle, analyzes the fundamental relationships which are relevant for component selection, and presents a specific circuit design. Finally, measurements taken from a 2-kW laboratory model are presented.