Solar inverter topology for single phase grid connected or stand alone applications along with microcontroller based maximum power point tracking (MPPT) has been presented in this paper. The PV array consists of only 12V cell arrangement for the topology. 1V 50Hz signal has been superimposed with the carrier frequency of 1080 Hz in the discrete PWM generator which is suffice for the desired output/grid voltage. This topology has been designed with modern switching devices of IGBT-Diode, 3-winding ideal transformer and a suitable harmonic filter that gives the CTHD of only 2.26%. The microcontroller based MPPT scheme adorned with Constant Voltage (CV) or Open Voltage ratio method algorithm to control the operation of the topology. The whole process has been performed by MATLAB/Simulink and simulation results have been presented.