This paper proposes a new topology of multilevel inverter that can work in three operation modes: the single-direction-balance mode, the bidirection-balance mode and the nonbalance mode. Only a DC source is required in a single-phase new inverter that works in the single-direction-balance mode or the bidirection-balance mode. The inverter has the ability of balancing voltages of DC capacitors without any assistance of other circuits. With this ability, low DC input voltages can result in high AC output voltages. Moreover, most switching devices switch at zero-voltage conditions. The proposed inverter with these two operation modes is suitable for low-power applications, especially with high frequency. It can also be applied in high-power applications and solutions are presented. The performance of the proposed inverter is confirmed by simulation and experiment.