The technology of modern power systems is revolutionizing as renewable energy sources are being integrated with electric power grids. In the form of inverters, power electronic converters are becoming an integral part of power systems due to their massive demand for grid integration of photovoltaic (PV) systems. Existing multilevel inverter topologies either require an output filter to get a sinusoidal voltage or generate a higher number of output voltage levels at the expense of many hardware resources. This paper presents a new single-phase 81-level inverter configuration with the name given as 'Modified W-Type Multilevel Inverter'. The proposed inverter configuration uses only eighteen power switches and four DC voltage sources to generate an 81-level output voltage approaching a sinusoidal waveform without an output filter. The general design equations are developed to calculate the number of switches, the number of voltage levels, and the number of DC sources for the proposed configuration. Loss and efficiency analysis is carried out that verifies a good practical efficiency of the proposed inverter configuration during the dynamic operation. A comparative analysis with the existing MLI topologies is also carried out that validates the effectiveness and novelty in reducing parts count and higher number of voltage levels. The proposed topology offers 1.04% total harmonic distortion of the output voltage which is within the benchmarks specified for grid integration without any filter requirements. The proposed inverter configuration is simulated in MATLAB/Simulink, and the results are validated by the design and development of a hardware prototype.