Considering the disadvantages of the traditional development pattern in an embedded control system for an inverter, that is, the single-process thinking and separation of software and hardware, a novel method, which is a model-based design, for developing a double closed-loop control system for the diode-clamped three-level inverter was proposed. System control models, including the PWM control algorithm model, the voltage control model, the neutral-point potential balancing model, and the frequency control model, were built with the MATLAB platform. The code-generation capacity and the operation effect were verified through a series of tests. The inverter with diode clamp and neutral-point potential control was developed. Codes were generated automatically and downloaded to the eZdsp28335 control chip. Experimental waveforms of the phase voltage, line voltage and current were analyzed under regulating the voltage and frequency. The experimental results demonstrate that the models and the generated codes are correct. Further studies have proven the feasibility of the system development model.