This study introduces a new single phase nine-level inverter using two capacitors and a single DC source. Voltage imbalances in the capacitors are eliminated using two control algorithms namely charging algorithm and discharging algorithm. The charging algorithm is used to change the inverter switching states when the measured voltage across the capacitors is less than the prescribed value. Alternatively, if the voltage across the capacitors is greater than the set value, the discharging algorithm determines the switching pattern of the inverter switches. The proposed voltage balancing algorithm is very simple to implement and makes the proposed inverter attractive for industrial applications. An extensive comparison of the proposed inverter is made against other topologies proposed in the literature in terms of the components used. The proposed inverter is tested in both standalone and grid connected modes. The proposed inverter is simulated and implemented as a prototype in the laboratory. Experimental results obtained from the prototype confirm the high-quality transient performance of the proposed inverter in terms of its dc capacitor voltage balancing capability.