In Recent years, renewable energy resources are widely used for generation of electricity. Solar energy is abundantly available on the earth since it is free from pollution. For remote and distributed applications, wind energy has found to be the greatest amount of cost-effective technology for renewable energy at mass level demand in the market of power distribution. Hybrid applications, where more than one renewable source is utilized, which include solar and wind energy sources have attractive demands in remote areas. The paper develops a model of microgrid connected with renewable energy sources. The aim is to design a model of hybrid PV/wind microgrid using an asymmetrical multilevel inverter, a novel approach. The objective is to design a solar-PV, wind and battery sources with a boost converter using maximum power point tracking technique (MPPT) to extract maximum energy from the renewable energy sources and to test the performance of the system power quality delivered to the microgrid in terms of harmonics. A nearest level control technique is implemented for improved harmonic reduction. MATLAB/SIMULINK is used for simulation and the validation is carried out experimentally. A hybrid system balances the energy distribution that helps sources to complement each other and is an excellent solution for harmonic reductions and microgrid integration for continuous power supply.