Worldwide, renewable energy systems are booming with reliable distributed generation (DG) technologies to help fuel increasing global energy consumption and mitigate the corresponding environmental problems. High cost and low efficiency are major problems for such systems using traditional buck inverters with line-frequency transformers. This thesis has proposed a novel single-phase single-stage buck-boost inverter suitable for cost-effective small DG systems. The inverter was analyzed from the angle of energy exchange and transfer with two current control schemes, DCM and CCM. Sinusoidal PWM (SPWM) control method, based on DCM, was discussed in details with steady state analyses, computer simulations, and laboratory tests. A concise model with underlying equations was derived to represent the physical behavior of proposed inverter. Closed-loop SPWM control was simulated and verified to have fast dynamic response and good tracking performance with robustness and insensitivity to dc input fluctuations, ac grid variations, and component parametric uncertainties. Other control strategies were also investigated from the critical DCM, CCM, or energy approach to either increase the fundamental output or further improve the performance. Comparisons demonstrated that SPWM was preferred control method with low output THD, reduced switching losses, and simple implementation. Therefore, it is concluded the proposed inverter provides a low-cost and high-efficient solution for small DG systems with low component count, minimal dc and ac filtering requirements, and improved performance.