Transformerless inverters are becoming popular for grid-connected photovoltaic applications due to their simplicity, reduced size, weight, cost, and higher efficiency. In this paper, a two-stage hybrid transformerless multilevel inverter (MLI) for single-phase grid-connected photovoltaic power generation system (PVPGS) is presented. The proposed topology comprises a multilevel boost converter (MLBC) and a symmetrical hybrid MLI. MLBC combines the boosting and switched capacitor voltage functions to produce self-balanced multiple voltage levels. The proposed MLI is derived from a combination of bidirectional switches, a half bridge, and a diode-clamped branch, which can produce only two variations in the total common mode voltage and is capable of suppressing leakage current as per DIN VDE 0126-1-1 grid standards. It offers the advantages of scalability, reactive power capability, reduced total harmonic distortion, and filter size. The proposed hybrid transformerless seven-level inverter is simulated in MATLAB, and experimental setup is built to validate the effectiveness of the proposed configuration. Finally, a comprehensive comparison is made with other seven-level inverter topologies.