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Conventionally, in order to reduce the ac components of the dc-link capacitors of the two-level Half-Bridge Voltage Source Inverter (HB-VSI), high dc-link capacitances are required. This necessitates the employment of short-lifetime and bulky electrolytic capacitors. In this paper, an analysis for the performance of low dc-link capacitances-based HB-VSI is presented to elucidate its ability to generate an enhanced fundamental output voltage magnitude without increasing the voltage rating of the involved switches. This feature is constrained by the load displacement factor. The introduced enhancement is due to the ac components of the capacitors' voltages. The presented approach can be employed for multi-phase systems through using multi single-phase HB-VSI(s). Mathematical analysis of the proposed approach is presented in this paper. To ensure a successful operation of the proposed approach, a closed loop current controller is examined. An expression for the critical dc-link capacitance, which is the lowest dc-link capacitance that can be employed for unipolar capacitors' voltages, is derived. Finally, simulation and experimental results are presented to validate the proposed claims. [ABSTRACT FROM AUTHOR]