A novel reference signal generator is combined with a multi-level inverter to form a rapid islanding detection scheme for grid-interactive PV system. The reference signal generator can easily be synchronized with the utility grid signal and produced a fixed magnitude and very low total harmonic distortion (THD) sinusoidal signal which is in phase with the utility grid signal. Unlike conventional phase-locked loop (PLL) circuitry, the reference signal generator can also provide a fixed magnitude sinusoidal signal even if the utility grid is disconnected and automatically re-synchronous with the grid rapidly. Consequently, seamless transfer between grid-connected and stand-alone modes could easily be achieved if anti-islanding protection is not required. If a saturation element is applied to the raw reference signal followed by the synthesis of the truncated signal using a multi-level inverter, the distinct flat-top feature of the synthesized signal can quickly and easily be identified if the network is in islanding mode at the point of common coupling. Experimental results are included to demonstrate the effectiveness of the proposed detection scheme. Crown Copyright (C) 2013 Published by Elsevier Ltd. All rights reserved.