This paper proposes a single-phase inverter with active power decoupling and lower-voltage-rated capacitor. The proposed inverter is deduced by moving the position of the capacitor in the exiting circuit. Then, the voltage stress of the capacitor is reduced significantly. In addition, two dual closed-loop control methods are developed to achieve maximum power point tracking (MPPT), dc-link voltage regulation, decoupling capacitor voltage maintenance, and the grid-tied current control. Finally, a 400-W prototype is constructed to verify the abilities of the proposed circuit.