Aninnovative methodology for the development of a commercial low-power single-phase transformerless inverter for grid connected photovoltaic (PV) systems is described. Computer-Aided Engineering (CAE) tools like MATLAB/Simulink™, PLECS™ and dSpace/TargetLink™ allow fundamental steps, such as: physical modeling and simulations, innovative control algorithms design and testing, preliminary hardware evaluation, parameter optimization and auto-generation of C-code for real-time SW implementation. A final on-site test of the real product shows the accuracy of the previous analysis.