This article deals with fault detection and the classification of incipient and intermittent open-transistor faults in grid-connected three-level T-type inverters. Normally, open-transistor detection algorithms are developed for permanent faults. Nevertheless, the difficulty to detect incipient and intermittent faults is much greater, and appropriate methods are required. This requirement is due to the fact that over time, its repetition may lead to permanent failures that may lead to irreversible degradation. Therefore, the early detection of these failures is very important to ensure the reliability of the system and avoid unscheduled stops. For diagnosing these incipient and intermittent faults, a novel method based on a Walsh transform combined with a multilayer perceptron (MLP)-based classifier is proposed in this paper. This non-classical approach of using the Walsh transform not only allows accurate detections but is also very fast. This last characteristic is very important in these applications due to their practical implementation. The proposed method includes two main steps. First, the acquired AC currents are used by the control system and processed using the Walsh transform. This results in detailed information used to potentially identify open-transistor faults. Then, such information is processed using the MLP to finally determine whether a fault is present or not. Several experiments are conducted with different types of incipient transistor faults to create a relevant dataset.