This paper presents a nonlinear geometric approach to fault detection and isolation (FDI) in grid-connected inverters. Faults are considered in inverter switches as well as in grid voltage and source current sensors. The FDI system is not sensitive to load variations or grid transients. No assumptions on balanced, zero-sum or sinusoidal form of voltages or currents are made. The resulting residual converges to zero in no-fault condition such that no threshold adjustment is needed. Simulations demonstrate performance of the proposed FDI system in presence of unknown disturbance.