The specific objectives of this subcontracted development work by Xantrex Technology Inc. were to: 1) Capture the newest digital signal processor (DSP) technology to create high-impact, "next generation" power conversion equipment for the PV industry; 2) Create a common resource base for three PV product lines. This standardized approach to both hardware and software control platforms will provide significant market advantage over foreign competition; 3) Achieve cost reductions through increased volume of common components, reduced assembly labor, and the higher efficiency of producing more products with fewer design, manufacturing, and production test variations; 4) Increase PV inverter product reliability. Reduce inverter size, weight and conversion losses. The contract goals were to achieve an overall cost reduction of 10% to 20% for the three inverters and with no compromise in performance. The cost of the 10-kW inverter was reduced by 56%, and the cost of the 25-kW inverter was reduced by 53%. The 2.5-kW inverter has no basis for comparison, but should benefit equally from this design approach. Not only were the contract cost reduction goals exceeded by a wide margin, but the performance and reliability of the products were also enhanced. The conversion efficiency improvement, as reflected in the 50% conversion loss reduction, adds significant value in renewable energy applications. The size and weight reductions also add value by providing less cumbersome product solutions for system designers.