This invention improves the performance and lowers the cost of DC to AC inverters and the systems where these inverters are used. The performance enhancements are most valuable in renewable and distributed energy applications where high power conversion efficiencies are critical. The invention allows a variety of DC sources to provide power thru the inverter to the utility grid without a transformer and at very high power conversion efficiencies. The enabling technology is a novel inverter circuit topology where the DC source is connected directly to the positive bus of the DC to AC converter and where a negative bus is generated from the positive bus with a flyback converter. The inverter power topology does include or require a transformer. The AC inverter output configuration can be either single-phase or three-phase. The AC inverter output can be either utility interactive or directly supply loads.