ABSTRACTGrid‐tied photovoltaic (PV) systems using switched capacitor (SC) inverters face challenges related to efficiency, reliability, and power quality. Despite their simplicity and reduced need for passive components, these inverters often experience high voltage stress on switches, limited voltage gain, and significant power losses due to frequent switching operations. These issues can negatively impact the efficiency, lifespan, and cost‐effectiveness of PV systems—factors that are increasingly critical for sustainable energy solutions. To address these challenges, we present a cost‐effective five‐level SC‐based grid‐tied inverter for PV applications. The proposed inverter features seven power switches, a single SC, and one source, providing a two‐fold voltage boost. Additionally, a current control structure is incorporated to regulate synchronized grid current injection. This paper offers a detailed analysis of the inverter's specifications, control technique, PWM scheme, and loss calculations, along with comprehensive design recommendations for components. Furthermore, when compared to recent topologies, the proposed inverter demonstrates superior performance in terms of power devices, leakage current, and efficiency. The design is validated through Matlab simulations and a hardware prototype.