The Primary Goal of this article is to discuss the development of intelligent controls for a power electronic inverter capable of interfacing a photovoltaic (PV)-based unit to the utility grid. The inverter is designed as a single-phase, full-bridge converter operating at 120 V, 60 Hz ac. The control functionalities of the inverter are defined under the perspective of the Smart Grid Initiative (SGI) of the U.S. Department of Energy and substantiated via case studies in this article as the ability to supply real and reactive power to local loads, supply real and reactive power to other utility loads up to the rated capacity of the inverter, provide voltage support at the point of common coupling (PCC), store energy in a lead-acid battery bank, and enable the provision of control options to the consumer based on near real-time electricity information obtained from the utility through advanced metering devices.