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In this paper, analysis of circulating currents of paralleled single-phase boost converter systems is presented. The dc loop and ac loop circulating currents are clearly explained. In order to eliminate the dc loop circulating currents and reduce switching losses, a simplified pulsewidth modulation strategy is adopted in a paralleled single-phase boost converter. Based on the analysis of circulating currents, common-mode circulating current (CMCC) and differential-mode circulating current (DMCC) are defined. Then, CMCC and DMCC compensators are proposed in a centralized control scheme to reduce the common-mode and differential-mode circulating currents in a parallel system operated in both rectifier and inverter modes with different power sharing for microgrid applications. Converter-paralleled system stability analysis is also presented. Finally, a prototype system is constructed to facilitate the theoretical results as verification. From the experimental results, the proposed control scheme can indeed reduce the circulating currents under equal and/or different power rating conditions in the parallel system. [ABSTRACT FROM PUBLISHER]