In this paper, a novel configuration of a three-level neutral-point-clamped (NPC) inverter that can integrate solar photovoltaic (PV) with battery storage in a grid-connected system is proposed. The strength of the proposed topology lies in a novel, extended unbalance three-level vector modulation technique that can generate the correct ac voltage under unbalanced dc voltage conditions. This paper presents the design philosophy of the proposed configuration and the theoretical framework of the proposed modulation technique. A new control algorithm for the proposed system is also presented in order to control the power delivery between the solar PV, battery, and grid, which simultaneously provides maximum power point tracking (MPPT) operation for the solar PV. The effectiveness of the proposed methodology is investigated by the simulation of several scenarios, including battery charging and discharging with different levels of solar irradiation. The proposed methodology and topology is further validated using an experimental setup in the laboratory.