In grid connected mode of distributed generation applications, the elimination of line frequency transformer is possible without impacting system characteristics related to grid integration, ground leakage current, dc injection, safety issues etc. This paper presents the design, modeling, simulation and implementation of closed loop operation of a novel inverter topology suitable for transformer-less single phase grid connected photovoltaic systems. The control scheme ensures extraction of maximum power from the solar Photovoltaic (PV) source, synchronization with the grid and controlled active and reactive power transfer to the grid. Simulation results with both dc source and solar PV as input, incorporating MPPT, are discussed in the paper. Implementation of a 250W laboratory prototype has been carried out using dSPACE DS1103 PPC controller board and the results of the grid connected mode of operation are presented in the paper.