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Summary: Transformerless inverters are becoming popular for grid‐connected photovoltaic applications due to their simplicity, reduced size, weight, cost, and higher efficiency. In this paper, a two‐stage hybrid transformerless multilevel inverter (MLI) for single‐phase grid‐connected photovoltaic power generation system (PVPGS) is presented. The proposed topology comprises a multilevel boost converter (MLBC) and a symmetrical hybrid MLI. MLBC combines the boosting and switched capacitor voltage functions to produce self‐balanced multiple voltage levels. The proposed MLI is derived from a combination of bidirectional switches, a half bridge, and a diode‐clamped branch, which can produce only two variations in the total common mode voltage and is capable of suppressing leakage current as per DIN VDE 0126‐1‐1 grid standards. It offers the advantages of scalability, reactive power capability, reduced total harmonic distortion, and filter size. The proposed hybrid transformerless seven‐level inverter is simulated in MATLAB, and experimental setup is built to validate the effectiveness of the proposed configuration. Finally, a comprehensive comparison is made with other seven‐level inverter topologies. This paper presents a two‐stage hybrid transformerless seven‐level inverter for single‐phase grid‐connected photovoltaic power generation systems. The proposed topology comprises a symmetrical hybrid multilevel inverter (MLI) and multilevel boost converter (MLBC). The MLBC combines the boosting and switched capacitor voltage functions to produce self‐balanced multiple voltage levels. It owns the advantages of modularity, reduced THD, filter size, and minimum leakage current with reactive power capability. The performance of the proposed configuration is validated through MATLAB simulation and experimental setup. [ABSTRACT FROM AUTHOR]