A single- or multi-phase DC to AC converter system suited for solar energy installations achieves cost reduction by eliminating low-frequency power transformers. One DC input polarity is selectively switched to an output terminal when the instantaneous AC output from a second output terminal is desired to be of the opposite polarity, while the other DC input polarity is used to form an approximation to a segment of a sine wave of the desired polarity at the second output terminal. The approximation for each phase is built in a multilevel fashion by outputting, at different times, voltage levels that differ by an integer multiple of a predetermined voltage step size, to the respective live AC output terminal through an associated low pass filter. A common-mode AC signal is thereby created on the balanced DC input lines at a frequency which is the AC output frequency times the number of phases, and which is useful for detecting ground faults in the DC circuit.