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This paper proposes a detailed mathematical model of Photovoltaic(PV) array and a three-level control scheme of a single-phase grid-connected system including maximum power point tracker, voltage source inverter and its controller based on the MATLAB/Simulink tool. The PV model is developed by using basic circuit equations of the photovoltaic (PV) solar cells including the effects of solar irradiation and temperature changes. The perturb-and-observe algorithm is used to extract maximum power from PV arrays and deliver it to the inverter and PI control algorithm is used to control the three-level voltage source inverter. The simulation result shows the power sharing between PV and the Grid for any given load. Here generation of PV depends on the insolation of PV array Keywords-Grid connected, photovoltaic (PV), proportionalintegral (PI) current control, pulse width modulated (PWM) inverter.