Step‐up multilevel inverters with common‐ground feature are attractive for transformerless photovoltaic systems. However, their performance deteriorates at step‐down voltage range. Considering a five‐level inverter with double voltage gain, the number of output voltage levels decreases from 5 to 3 for a modulation index smaller than 0.5, declining the quality of the output currents. This paper proposes a new dual‐mode five‐level common‐grounded inverter with a reduced number of switches. The proposed topology has the ability to operate as step‐up or step‐down making it well suited for application with wide input voltage range. The proposed inverter consists of five unidirectional switches, one bidirectional switch, two diodes, and two capacitors. In addition, the description of the topology, the design guidelines, and a comparison among the main topologies are given in detail. Experimental results are obtained to attest the practicability of the proposed solution.