This paper describes a single-phase five-level PV inverter topology with dual reference modulation technique. Two reference signals identical to each other with an offset equivalent to the amplitude of the triangular carrier signals were used to generate PWM signals. Maximum Power Point Tracking (MPPT) is introduced in solar array power system with direct control method. The incremental conductance algorithm is used to track the Maximum Power Point, as it shows a better control under different atmospheric condition. The Total Harmonic Distortion (THD) produced by an inverter has been reduced. The proposed system is analyzed and implemented through simulation.