The main concept of this inverter is to use diodes and provides the multiple voltage levels through the different phases to the capacitor banks which are in series. A diode transfers a limited amount of voltage, thereby reducing the stress on other electrical devices. The maximum output voltage is half of the input DC voltage. It is the main drawback of the diode clamped multilevel inverter. This problem can be solved by increasing the switches, diodes, capacitors. Due to the capacitor balancing issues, these are limited to the three levels. This type of inverters provides high efficiency because of the fundamental frequency used for all the switching devices and it is a simple method of the back to back power transfer systems.