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This paper presents a new topology of an isolated multilevel inverter that can be used for high voltage and high power applications such as integrating battery storage systems and alternative energy sources to power grid. With reduced number of components the proposed cascaded multilevel inverter requires only one dc source by cascading high frequency transformers. The core building blocks in the multilevel inverter are the six-switch three-phase converters that are controlled using PWM phase-shifted scheme for harmonic reduction. Discussions have been given to compare the proposed cascaded multilevel inverter with typical existing cascaded inverters. Simulation and comparison studies have been carried out to verify the performance of the proposed multilevel inverter.