In this research explores the design and performance of a transformerless (TL) three-level neutral point clamped (NPC) inverter for grid-connected photovoltaic (PV) systems. In the push toward more compact, cost-effective, and efficient renewable energy systems, TL inverter topologies have emerged as a strong alternative to conventional systems that use line-frequency transformers. The proposed topology includes two separate PV sources interfaced through dedicated boost converters, which then feed into a common NPC inverter, enhancing flexibility and maximum power point tracking (MPPT) performance. Comprehensive simulations were performed using MATLAB/Simulink to evaluate grid compatibility, total harmonic distortion (THD), and transient behavior under fluctuating irradiance levels. Results validate the efficacy of the system in maintaining grid compliance, lowering leakage current, and achieving high-quality power output. Compared to traditional two-level inverters or transformer-based alternatives, the proposed system demonstrates a clear performance advantage in both efficiency and reliability.