This research introduces a five-level common-ground switched-capacitor multilevel inverter (SCMLI) designed for solar photovoltaic (PV) applications, addressing key issues like power loss and total harmonic distortion (THD) that affect power quality in MLIs. The common ground configuration of SCMLI effectively reduces leakage current, a typical concern in inverter designs. By strategically arranging capacitors to generate voltage levels through charging and discharging, either in series or in parallel with the Direct Current (DC) source, the design eliminates the need for complex control mechanisms or external balancing circuits, as the capacitors automatically self-balance. SCMLI achieves 100% DC-link utilization with a single DC source, offering symmetrical operation and efficiency, with the flying capacitor (FC) naturally self-balancing at half the input voltage. Additionally, a simplified space vector pulse width modulation (SVPWM) technique is presented to address the complexity of traditional SVPWM by reducing computational requirements, thereby optimizing switching states and minimizing power losses compared to sinusoidal PWM (SPWM). This topology further reduces conduction losses by ensuring fewer devices conduct simultaneously at each voltage level, resulting in a reported efficiency of 95% at 5 kW, as verified by Power Electronics Simulation Software (PSIM) simulations. The inverter’s design features a specific configuration of upper and lower cells that produce a five-level AC output with a voltage gain of 1.12. Overall, the simplified SVPWM demonstrates superior performance, with smoother output, reduced THD, and greater efficiency than traditional SPWM, making the SCMLI a promising solution for improving power quality in solar PV systems.