This paper deals with a reduced switch multi-level inverter for the solar photovoltaic system-based 127-level multi-level inverter. The proposed technique uses the minimum number of switches to achieve the maximum steps in staircase AC output voltage when compared to the flying capacitor multi-level inverter, cascaded type multilevel inverter and diode clamped multi-level inverter. The use of a minimum number of switches decreases the cost of the system. To eliminate the switching losses, in this topology a square wave switch is used instead of pulse width modulation. Thereby the total harmonic distortion (THD) and harmonics have been reduced in the pulsating AC output voltage waveform. The performance of 127-level MLI is compared with 15 level, 31-level and 63-level multilevel inverters. The outcomes of the solar photovoltaic system-based 127-level multi-level inverter have been simulated in a MATLAB R2009b environment.