This paper proposes a new approach for grid integration of solar photovoltaic system using modified incremental conductance maximum power point tracking algorithm with multi-output converter and multilevel inverter. The multi-output converter is a combination of boost converter and switched capacitor function to generate different self-balanced output voltages using single switch, single inductor, 2N-1 diodes and 2N-1 capacitors. This topology is proposed to be used as DC link in applications where several controlled voltage levels are required with self-balancing and unidirectional current flow, such as photovoltaic (PV) or fuel cell generation systems with multilevel inverter. The utilization of multilevel inverter in the proposed system provides better quality of output voltage and current waveform thereby reducing the size of passive filters. Also, it eliminates the requirement of bulky transformers for grid integration. Multicarrier unipolar phase disposition pulse width modulation technique is employed for triggering the switches of the multilevel inverter. The proposed system is tested with standard test conditions using MATLAB/SIMULINK. © 2019 The Authors. Published by Elsevier Ltd.